CFA Institute launches code of conduct for trustees

The code sets out 10 ethical responsibilities for trustees to follow and is aimed to sit alongside local governance structures such as guidance from The Pensions Regulator and other bodies.

The CFA Institute said trustees were faced with growing complexities such as ageing populations, mortality assumptions, volatile markets and ever changing legislation and therefore needed transparent guidance.

And it said the code of conduct would help individual trustees to manage their ethical responsibilities such as securing the financial future of pension schemes and its members’ benefits.

CFA standards of practise director Jon Stokes said: "The conduct of those who govern pension schemes significantly impacts the lives of millions of people around the world who are dependent on pensions for their retirement income.

"Just as shareholders trust corporate directors to look out for their best interests in a corporate setting, trustees are charged with looking out for the interests of the participants in and beneficiaries of pension schemes. The code established just that through the provision of 10 fundamental ethical principles."

The CFA said the code highlighted a list of responsibilities which were principle-based and suggested ethical principles for trustees to follow.

The code was produced by a working group led by the CFA Institute – which included representatives from National Association of Pension Funds and The Organisation for Economic Cooperation and Development.