CFA Institute Launches Diversity, Equity, and Inclusion Code for the Investment Profession in US and Canada

CFA Institute, the global association of investment professionals, today launched a comprehensive voluntary Diversity, Equity, and Inclusion Code for the Investment Profession in the United States and Canada (“DEI Code”).

The DEI Code aims to foster commitment from institutions to DEI action that will lead to greater inclusion of wider viewpoints from the best talent, which will lead to better investment outcomes, help create better working environments, and generate a cycle of positive change for future generations. CFA Institute today becomes the first signatory to the DEI Code.

Today’s release follows a two-year plus industry-wide consultation and drafting process. The Code calls for signatory organizations to commit to six metrics-based Principles. In addition, signatories commit to accelerating and amplifying the impact of their commitment by making the economic, business, and moral case for diversity, equity, and inclusion. Further, in Canada, signatories commit to implementing the Truth and Reconciliation of Canada Call to Action #92 and to embracing Indigenous reconciliation.

Margaret Franklin, CFA, President & Chief Executive Officer, CFA Institute comments:

“To build an industry that is more representative and resilient, far more needs to be done across all aspects of DEI. We recognize that the words diversity, equity, and inclusion mean different things to different people, and each part of the globe may be in a different stage of the DEI effort. We aspire to bring more markets into this work, but we have started in the US and Canada to ground our efforts and to provide us with a path forward. The DEI Code results from industry collaboration that has brought forth strategies that can enable the necessary cultural change within firms. I am immensely grateful to the dedicated efforts of the DEI Working Group members for their leadership in bringing this Code forward for the investment profession.”

The six Principles of the DEI Code require commitment to:

Pipeline: Expanding the diverse talent pipeline;

Talent Acquisition: Designing, implementing, and maintaining inclusive and equitable hiring and onboarding practices;

Promotion and Retention: Designing, implementing and maintaining inclusive and equitable promotion and retention practices to reduce barriers to progress;

Leadership: Using our position and voice to promote DEI and improve DEI outcomes in the investment industry. We will hold ourselves responsible for our firm’s progress;

Influence: Using our role, position, and voice to promote and increase measurable DEI results in the investment industry;

Measurement: Measuring and reporting on our progress in driving better DEI results within our firm. We will provide regular reporting on our firm’s DEI metrics to our senior management, our board and CFA Institute.

Sarah Maynard, ASIP, Global Head, External Diversity, Equity, & Inclusion, CFA Institute comments:

“Over successive generations, the investment industry has lacked the knowledge, experience, and, frankly, motivation to build DEI into the framework and culture of organizations. That is now changing. Increasingly, responsibility for DEI is moving to business owners with DEI goals embedded in long-term business strategy. There is no finish line, and effective change will require iterative, continuous improvement with commitment from every individual. It will also require trust, leadership and stringent data handling protocols. Data collection is a tool for greater understanding and wider culture change and is essential to our accountability as DEI Code signatories.”

Code signatories will provide a confidential, annual progress report to CFA Institute using an accompanying Reporting Framework. In turn, CFA Institute will report on industry-level statistics once a critical mass of signatories is reached. Signatory organizations must meet the following foundational reporting requirements within two years of becoming a DEI Code signatory:  

• An adopted DEI policy and statement;
• An established senior leadership ownership and oversight governance process; and
• An implementation plan to integrate DEI within the signatory organization’s people processes and policies.

The DEI Code Working Group consists of members of CFA Institute DEI Steering Committee, DEI practitioners, and investment professionals. The Group shared a common belief that progress required commitment from the senior leaders at investment organizations who would have to both lead by example and hold their organizations accountable. Members came from organizations such as State Street Global Advisors, CalPERS, Columbia Investment Management Company, Northern Trust Asset Management, and many more.

To view the Diversity, Equity, and Inclusion Code for the Investment Profession (United States and Canada) visit here. Implementation Guidance and a Reporting Framework are also available here.

On 10 March 2022, Sarah Maynard, ASIP, will host a CFA Institute webinar presentation about the DEI Code. More information and online registration is available here.