Professionalism in Investment Management

Investment management is an upcoming profession. This is evidenced by the following:

  1. The public understanding of its practice and codes are still growing.
  2. There is a lack of recognition by the regulators and the employers, which prevent the establishment profession in investment management.
  3. Not all participants in the investment management are professionals since the participants have not engaged in specified training or are members of any recognized authority. This makes it hard for investment management to gain trust.

However, some critical elements of investment management have developed over the years. Investment management just like any other profession meets a large proportion of the profession expectations. Moreover, in most of the countries, some form of certification has been established, with no requirements to join a professional body.  The investment management profession is trying to move with time. That is, it tries to cope with ever-changing demands.

The investment management is becoming global due to increased opening of the capital market internationally. Therefore, investment managers can offer their services in different countries or freely moving within the offices of multinational asset management firms. Several established bodies such as actuarial societies have investment management professionals as members.

Building Trust in Investment Management

Investment management profession as established itself to the level of other professions such as law and medicine, such that it is trusted to draw knowledge and utilize it with care and judgment. To maintain this trust, professionals should possess technical and financial expertise and understand the laws and regulations.

The investment management professionals should explain to the clients about the charges, uncertainties, and the conflicts that may arise in providing their investment services.

The investment management professionals should always adhere to codes of ethics and professional standards while their practices should be guided by care, transparency, and integrity.


Which of the following is most likely to be the group whose members should uphold fiduciary duty?

A. An employer

B. A not-for-profit body

C. A Profession


The correct answer is C.

Fiduciary duty is a commitment to high-quality care when acting for the benefit of another party. This implies that the professionals should act in the best interest of the client while maintaining a high level of care, skill, and diligence. Other institutions such as employers, regulators and not-for-profit bodies may support but not as much as professions.


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