The Cayman Islands Chamber of Commerce Pension Plan is the first pension organisation in the Cayman Islands to confirm compliance with the CFA Institute Code of Conduct for members of a pension scheme governing body.
The CFA Society of the Cayman Islands, an association of local investment professionals, consisting of portfolio managers, security analysts, investment advisers and other financial professionals, congratulated the trustees of the Chamber Pension Plan on their decision to adopt and comply with the code, saying it highlights the trustees’ commitment to the best interests of pension participants and beneficiaries.
For participants, the code provides a benchmark of ethical conduct they should expect from the pension trustees and offers a greater level of confidence in organisations that adopt the code, the CFA Society noted.
“Individuals place significant trust in their pension plan trustees to safeguard and grow their assets for retirement,” said Laren Gillespie, vice president of CFA Society of the Cayman Islands. “With investor trust having been shaken by recent global market events, adopting the code clearly demonstrates the pledge of the trustees to the highest level of professional conduct while discharging their responsibilities to the plan.”
The Code of Conduct for Members of a Pension Scheme Governing Body is grounded in the ethical principles of CFA Institute and the CFA Programme. Compliance with the code requires that board members commit to following a set of fundamental ethical principles, which are universally applicable for all types of pension plans.
The code includes the requirement of board members to act with prudence and reasonable care, to act with skill, competence and diligence, and to maintain independence and objectivity by, among other actions, avoiding conflicts of interest, refraining from self-dealing and refusing any gift that could reasonably be expected to affect their loyalty. It also requires to deal fairly, objectively and impartially with all participants and beneficiaries and to communicate with participants, beneficiaries and supervisory authorities in a timely, accurate and transparent manner.
“The time has come for all investment intermediaries to take responsibility for restoring trust in the profession,” said Kurt Schacht, managing director of the Standards and Financial Market Integrity division of CFA Institute. “We applaud the Cayman Island Chamber of Commerce Pension Plan for exercising a bold voice for professional ethics. We encourage all pension organisations that meet these standards to demonstrate their integrity and adopt the code.”
The code was developed with a multinational coalition that included the Council of Institutional Investors in the United States, the Organisation for Economic Cooperation and Development, the National Association of Pension Funds in the United Kingdom, the Swiss Association of Pension Funds, the Hong Kong Retirement Schemes Association and the Dutch Association of Industry-wide Pension Funds.