Transparency Initiative – Global Capital Markets

“Virtually everyone on the Street believes there are significant improprieties,” says former New York Gov. Eliot Spitzer.

Do recent events such as the insider-trading probe suggest that it is becoming increasingly more difficult for institutional investors to hire only those investment managers and partners that possess the highest moral and ethical standards?

Is there an over reliance on compliance with applicable laws and regulations to ensure institutional investors hire only those investment managers and partners that possess the highest moral and ethical standards?

Would it make sense to organize a global transparency initiative to provide institutional investors access to a suite of diagnostic tools and new sources of reliable, high-quality information to conduct thorough due diligence of investment managers and partners?

In the interest of shareholders and for the protection of investors, would it make sense for the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Public Company Accounting Oversight Board (PCAOB) to work together on a global transparency initiative to improve due diligence in the capital markets?

Americans have pulled $60 billion out of U.S. stock funds this year, according to the Investment Company Institute.  Restoring investors’ confidence may depend on whether they see ample evidence that federal regulators are successfully cracking down on bad behavior.  Would greater transparency into the moral and ethical values of all participants in the capital markets bring small investors back to equities?

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About zethics
CEO and founder of zEthics, Inc. Thirty years of experience with finance and accounting background in public private sectors.

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