Lahore School of Economics

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The Need of Ethical Culture for Building Investor’s Trust

Kashif Shamraiz, CFA Director and Treasurer CFA Society Pakistan

It is common knowledge that many opinion polls rate the financial services industry very low on the scale of trust and integrity. People overreact and become convinced that everything about finance is rigged and dishonest. Others see a fundamental shift in the level of dishonesty, greed, and unethical behavior in the industry. They pine for an industry that once was a professional calling, which cared strongly about a client’s well-being. That profession, they feel, has morphed into a business absolutely focused on gathering assets and extracting fees. Whether negative perceptions or an actual decline in industry integrity, the financial industry today faces a crisis of Trust that threatens its future. Without trust, markets don’t function properly and growth prospects are limited. Now the Question is what can the financial industry do to change its trajectory? In order to put a brake on the continuously deteriorating Trust level of investors in the finance industry more than a set of rules and enforcement is required; a highly ethical attitude of market participants would be the most welcome solution in this regard. The adherence of investment professionals to ethical practices benefits all market participants and increases investor confidence in global financial markets. Clients are reassured that the investment professionals they hire operate with the clients’ best interests in mind, and investment professionals benefit from the more efficient and transparent operation of the market that integrity promotes.. Ethical practices instill public trust in markets and support the development of markets. Sound ethical culture is fundamental to sustainable capital markets and the enhancement of the investment profession in the eyes of investors.

Kashif Shamraiz, CFA is a Corporate & Institutional Banker having more than 9 years of broad-based and diversified experience with exceptional track record in Relationship Management, Corporate Lending, Syndications, Islamic Finance, Trade Finance, Seasonal/Commodity Finance, Credit Appraisal & Deal Structuring, Credit Risk Management and Financial Training. Currently, he is working with Allied Bank Limited as SRM/Team Leader-Corporate & Investment Banking Group, wherein he is responsible to manage a well diversified credit portfolio of over PKR 25 Billion comprised of 27 active relationships including top of the line Corporate Houses and Conglomerates from diverse sectors such as Chemicals (ICI Pakistan, Engro Polymer), Fertilizers (Engro Fertilizers & DH Fertilizers) Power (EngroPowergen, Sindh Engro Coal Mining), Financial Institutions (Pak-Kuwait, PAIR), Textile (Naveena Exports, Al-Karam), Utilities (SSGC) and FMCGs (Engro Foods). Before joining Allied Bank, he has also served Meezan Bank Limited as Senior Relationship Manager-Corporate Banking.

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posted by S A J Shirazi @ 5/30/2014 11:00:00 AM,

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