Call for ethics to be foundation of industry education courses

Every asset management educational program and course should have an ethical code as its foundation, according to Perpetual's group executive of global equities, Emilio Gonzalez.

“It is the exception rather than the rule currently and that needs to change if the industry is going to achieve and maintain the highest level of professional standards.

“There is a lot of emphasis on cash flows and valuing a company and the like, but not on the hard ethical decisions on issues such as whether there will be conflicts of interests and responsibilities to the client.

“As a consequence, a lot of people entering the asset management industry are having to learn that on the job, because it is not covered to the same extent in the education courses."

Gonzalez said the Government “could try to legislate ethical behaviour but (this is not going to work) unless individuals have the right principles and the right codes to adhere to".

“I think if you had people who have ethics as part of a course from very early on in their education, and not just on the job, they would know what’s right and wrong.

“You have to have these ethics in black and white, which will enable individuals to self regulate, and that will in time lead to better industry outcomes,” he said.

Gonzales added “the reality is if someone is going to be successful in this industry without embracing a code of ethics, this success is not going to last for very long".

“The revered investment specialists, such as the (Warren) Buffets of this world, are all characterised by an unrelenting respect for ethical standards,” he said.