CFA INSTITUTE REPORT
THE POWER OF 100,000 VOICES
In these tumultuous times, with a cacophony of
opinions, the collective voice of 100,000 members
Yes
worldwide holds attention. Policy makers and
The UK Government announced plans to No
regulators are routinely asking us to inform their
strengthen the capital base of domestic
decisions, knowing that we represent the leading
banks by directly investing in the equity of
body of investment professionals. In preparing our
those banks. Is this approach a model that
positions, we have increasingly turned to you,
governments worldwide should follow?
seeking your feedback on substantive issues. As
14 October
ever, your responses have been thoughtful and
clear, refl ecting how carefully you have considered
such topics. As a result, we are making an important
approach a model that
contribution to the review of the global fi nancial
governments worldwide should
architecture.
follow?
For example, as the debate about the Fair Value
Speaking out on important
approach to valuation became more heated, we
issues with the support of a large
decided to poll members across the European
group of professionals gives us the
Union.
opportunity to infl uence. At the
time of writing, we have been
Yes
invited to give evidence to the UK
Do you support a suspension of
No
Treasury Committee’s inquiry into
fair value standards under the
the banking crisis. We will get a
International Financial Reporting
chance to represent members’
Standards (IFRS)?
opinions and inform the committee
2 October
of the investor perspective on the
crisis, as well as suggest possible
solutions.
CFA Institute’s mandate to lead
The overwhelming response led us to write a
the investment profession globally
letter to the EU President-in-offi ce, Nicolas
requires that we remain fully
Sarkozy, giving voice to the members’ views. We
engaged with policymakers. Our
wrote: “Any weakening of accounting rules will not
power comes from the chorus of
improve market stability and would further
our 100,000 voices. We therefore
undermine investor confi dence. Representing
appreciate your feedback on our
12,000 members in Europe, we urge EU leaders to
questions and surveys.
keep fair value rules in place so that investors
continue to have the most relevant representation of
Nitin Mehta is managing director,
economic reality with which to make their decisions.
CFA Institute, EMEA
Such transparency sits at the heart of restoring
confi dence.” We were subsequently comforted when
a meeting of EU leaders decided not to suspend fair
value standards.
“CFA Institute’s mandate to lead
Later, when the UK government unveiled its
comprehensive plan to tackle the growing banking
the investment profession globally
crisis, we asked members worldwide about its
application elsewhere. Once again, the response
was loud and clear: the UK solution provided a good requires that we remain fully
model.
The UK Government announced plans to
strengthen the capital base of domestic banks by
engaged with policy makers”
directly investing in the equity of those banks. Is this
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