EUROPE - Fiduciary duty and good governance are key aspects of the European Fund and Asset Management Association's (EFAMA) new code of conduct for the European investment management industry.
Applicable to all types of investment management, the code has been written with reference to the rules of conduct as called for by the UCITS directive, and to the principles of best practice contained within the Markets in Financial Instruments directive.
EFAMA said the provisions of the code would be updated following the evolution of applicable EU legislation and regulation.
Under the code an investment management company is expected to accept a fiduciary duty to the investor and to always act in the investor’s best interest, “in line with the integrity of the markets”.
As part of the terms of governance, the board and senior management of an investment management company should act in “sufficient autonomy and independence of shareholders, service providers and other related parties” to resolve any conflicts of interests.
As the representative association for the European investment management industry, EFAMA has pledged to promote “ethics, integrity and professionalism” throughout the industry.” and to support investor protection.
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