The board of trustees of the Silver Thatch pension plan has decided to adopt and comply with the Certified Financial Analyst Institute Code of Conduct for Members of a Pension Scheme Governing Body. Silver Thatch is the second pension organization in the Cayman Islands to confirm compliance with the code. The Chamber of Commerce Pension Plan adopted the code in 2012.
The code of conduct highlights trustees’ commitment to the best interests of the pension participants and beneficiaries, the CFA Society Cayman Islands said in a statement. 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 organizations that adopt the code.
“Individuals place significant trust in their pension plan trustees to safeguard and grow their assets for retirement,” said Simon Cawdery, president of CFA Society 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 pension plan code of conduct is founded on the ethical principles of CFA Institute and the CFA program. Compliance with the code requires board members to commit to a set of fundamental ethical principles, which are universally applicable for all types of pension plans. Among the requirements of board members are: to act with prudence and reasonable care; to act with skill, competence, and diligence; 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; 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 Silver Thatch Pension Plan for exercising a bold voice for professional ethics. We encourage all pension organizations that meet these standards to demonstrate their integrity and adopt the code.”