CFA Institute Study Suggests Investment Leaders Must Change to Succeed

For more than 15 years, Darrach Bourke has been working in the financial industry in California. He serves as a financial advisor for Emerson Equity – a registered investment advisor and broker-dealer –and is familiar with a wide range of financial planning services, including retirement planning and education funding. Darrach Bourke also belongs to the CFA Institute, an organization dedicated to supporting the investment profession.

In April 2017, the CFA Institute released the results of the Future State of the Investment Profession study. This study coincides with the organization’s Putting Investors First campaign, an annual initiative that encourages that industry to address the needs of investors internationally, and serves as a guide for professionals who wish to adapt as time goes on. According to the data gathered in the study, investment industry leaders who do not alter their business model could put the future of their firms at risk.

The CFA Institute’s Future State of the Investment Profession study looked that which skills investment leaders must have to succeed in the future. Based on responses from Europe and North America, the ability to create and communicate a vision for a firm was the most important skill for asset manager CEOs. Meanwhile, relationship building skills, crisis management, and ethical decision-making were essential skills in Latin America, Asia Pacific, Africa, and the Middle East.

Based on the study, the CFA Institute also found that investment industry leaders must focus on such areas as professional transformation, stronger standards, and fiduciary implementation if they want to be successful in the future. Most respondents expect changes in investment trends over the next five to 10 years that will affect existing investment firms. Some of these changes include redefined client preferences and technological advances.

Private Placement Securities - Investments for Sophisticated Investors

Financial advisor Darrach Bourke serves as the senior vice president of wealth management at Emerson Equity in San Mateo, California. Alongside traditional brokerage-service offerings, Darrach Bourke and his associates at Emerson Equity make alternative investments including private placements available to high-net-worth clients. 

Private placement investments in securities are exempt from SEC registration and are not available to the general public. They are regulated under the Securities Act of 1933, which provides guidelines for trading on the open market as well as trading in private placements. 

Under these rules, people who wish to invest in a private placement are typically required to be accredited investors. This means they either have a net worth exceeding $1 million, not including their home, or they earn annual income in excess of $200,000. These individuals are expected to be qualified investors who understand the benefits and risks of unregistered offerings.

In some situations, non-accredited investors who do not meet net worth or income requirements are able to invest in private placements. These individuals must demonstrate that they are financially sophisticated and experienced enough to evaluate unregistered investments. Issuers are required to answer questions about the investment when dealing with non-accredited investors, in order to allow such investors to make fully informed decisions.