SBI Funds Management recently announced its adoption of the CFA Institute's Asset Manager Code of Professional Conduct.
TurniT Capital Advisors
and Alpha Capital are two other firms in India that have also adopted the code. However, SBI Funds Management is the first mutual fund company in India to tie up with CFA Institute for the code. Players like BNP Paribas and BlackRock have done so in other markets. To see the entire list of firms claiming compliance with the Asset Manager Code of Professional Conduct, click here.
The code sets a credible global industry standard for investment best practice and for investment professionals' ethical conduct. So it logically follows that compliance with the code reflects the AMC's efforts to put in place a set of standards and establish an ethics-based culture.
The CFA Institute is a global association of investment professionals that sets the standard for professional excellence and credentials. Every CFA charterholder has to sign a professional code of conduct at the individual level. This one is on the corporate level.
The general principles of conduct are:
1. Managers must act in a professional and ethical manner at all times.
2. They must act for the benefit of clients.
3. They must act with independence and objectivity.
4. They must act with skill, competence, and diligence.
5. They should communicate with clients in a timely and accurate manner.
6. They must uphold the applicable rules governing capital markets.
To read more about the Asset Manager Code of Professional conduct, click here.
