Asset Manager Code (AMC) Purpose and Benefits

At first glance, the Asset Manager Code of Professional Conduct might seem redundant; just a watered-down version of the Code and Standards. Yet, unlike the Code and Standards, with which all CFA® charterholders have to declare their compliance every year to renew membership, the Asset Manager Code is geared toward just a particular group of finance professionals: asset managers. If the aim is for the guidance provided by the Asset Manager Code to be as inclusive as possible, who do you think is meant to adopt and claim compliance with it?

Not quite. The definition is a bit more specific than that.

Not exactly. Individual CFA charterholders must comply with the Code and Standards, which supersede all but local laws, if applicable.

That's it. The Asset Manager Code (AMC) is designed to provide guidance to _firms_ that manage client assets. That's because all asset managers in a firm may not be CFA charterholders, and the intent is to provide guidance to _all_ asset managers. And since ethical leadership begins at the top, the AMC should be adopted by the highest levels of board oversight and management. Of course, a firm shouldn't rely on the AMC as its only guidance on ethical issues. What other guidance do you think a firm that complies with the AMC should also follow?

No. Those are only mandatory for individuals who are CFA charterholders or members of CFA Institute.

Yes, of course.

To claim compliance with the AMC, a firm must comply with all aspects of the AMC; there is no partial compliance. CFA Institute doesn't verify compliance, but it does require firms that claim compliance to notify CFA Institute of doing so. It also requires that firms claiming compliance include a disclaimer that compliance hasn't been verified. Since it doesn't mandate or verify compliance, why do you think CFA Institute bothers to sponsor adoption of the AMC?

Yes.

While plausible, this isn't the stated intention of CFA Institute.

Yes.

In sum: [[summary]]

Everyone must comply with individual laws and regulations.

In fact, CFA Institute fulfills its mission by raising awareness of the importance of the unique trust endowed to asset managers and by providing guidelines for asset managers to fulfill that trust.

Firms that manage assets

Individual CFA charterholders that manage assets

Individuals that manage assets but are not CFA charterholders

Applicable laws and regulations

CFA Institute Code and Standards

To market the CFA brand and increase its value

To fulfill its mission to set high standards of conduct

To raise awareness of the critical relationship between asset managers and clients

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