The AMC outlines the ethical and professional responsibilities of firms that manage assets on behalf of clients. It set out six major rules for managers to follow:

• Act in a professional and ethical manner at all times;
• Act for the benefit of clients;
• Act with independence and objectivity;
• Act with skill, competence, and diligence;
• Communicate with clients in a timely and accurate manner;
• Uphold the applicable rules governing capital markets.

Aaron Low, chair of the board of governors at CFA Institute, reckons different standards of conduct across different markets pose significant challenges to investors, and as such investors will benefit from asset managers adopting a global standard of culture and due diligence which places investors’ interests at the core essence of operations.

“The prospect of such a universal set of principles and values is paramount to true borderless markets,” says Mr. Low. “Research findings on most investors generally under-diversifying their non-domestic allocations [reveal that this] has been normally attributed to lack of information on foreign markets. At the heart of this anomaly is more likely to be a lack of understanding and trust in anything that is foreign. So it is now more important than ever for investors to have a common basis on which to compare investment firms across these markets.”

Commenting on the decision to adopt the code, Jackie Chew, chief executive officer at Eastspring Investments Singapore, says: “Adopting the AMC is just one of many ways we demonstrate to our clients our commitment to fiduciary responsibility and helps us stand out in this competitive market.”

Manraj Sekhon, chief executive and chief investment officer at Fullerton Fund Management, remarks: “Our compliance to the AMC helps ensure alignment between our own internal values and the professional standards that are recognised globally. This gives clients greater confidence in Fullerton, which is especially important as we continue to broaden our presence in new markets.”

In addition to Eastspring and Fullerton, there are six other Singaporean asset managers who claim compliance to the AMC, including Hayate Partners, IDFC Capital (Singapore), Lumen Advisors, SilkRoad Property Partners, SLF Strategic Advisers and Valeur. Currently, more than 1050 firms worldwide voluntarily comply with the code.

Original：More asset managers opt to adopt CFA Institute’s code of conduct