The CFA Institute responded with "concern and disappointment" to the mega-insider trading case that was brought to light last week.
The CFA Institute responded with "concern and disappointment" to the mega-insider trading case that was brought to light last week. It charged 14 financial services industry workers with stealing information from Bear Stearns Co. and Morgan Stanley and concocting a "brazen" scheme that netted participants $15 million.
"Our organization is deeply troubled about the impact these ethics-related allegations have on investor trust," said Jeff Diermeier, president and chief executive of the CFA Institute.
Mr. Diermeier added that he was "outraged and dismayed" to learn that one of the individuals in the scheme, Erik Franklin, was once a member of the CFA Institute.
"We approach this with the knowledge that proper training and attention to ethics at an individual level, with continuous reinforcement, is part of the answer," he said. "Some may never learn, but we hope the industry will join us in reaching out with a strong reminder." The CFA Institute is based in Charlottesville, Va.
The SEC alleged that eight Wall Street professionals, including a UBS research executive, a Morgan Stanley attorney, two broker-dealers, a day-trading firm and three hedge funds took part in the alleged crime.
In addition, 13 people were charged by the U.S. Attorney for the Southern District of New York in the scheme.
