CFA Signs Up 40 Firms to Follow Its Diversity, Equity and Inclusion Code

Verus Advisory is the latest to join the group of signatories, which so far represent $17 trillion in assets.


Since its launch in February, the Chartered Financial Analyst Institute’s Diversity, Equity and Inclusion Code has enlisted 40 companies, representing approximately $17 trillion in assets, along with the CFA itself and the CFA societies in Boston and Montreal.

The DEI Code had its beginnings in March 2020, when the CFA Institute’s Diversity, Equity and Inclusion Steering Committee asked a DEI Code working group to develop a set of principles to increase DEI in the investment industry. The group identified six main principles that would require the support of a company’s leadership:

  • 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 career progress;
  • Leadership – promoting DEI and improving pertinent outcomes in the investment industry;
  • Influence – company leaders using their positions to promote and increase measurable DEI results in the investment industry; and
  • Measurement – tracking and reporting on a company’s DEI progress.

According to the CFA, each organization adopting the code must commit to working on the six principles, while .

“Diversity, equity and inclusion are crucial elements in the future of the investment industry and the success of investment firms,” says the CFA. “A diversity of perspectives will lead to better investor outcomes; an inclusive investment industry will better serve our diverse society.”

The CFA cited a PwC Global survey, which found that 85% of financial services’ CEOs said that promoting inclusion and diversity helps enhance business performance. The institute also cited findings from a McKinsey & Co. study, showing that top-quartile companies for racial and ethnic inclusion outperformed those in the fourth quartile by 36% in profitability.

Companies that sign the CFA’s DEI Code are required to commit to reporting on their DEI metrics and informing the CFA about their progress. Signatories are also expected to provide a confidential annual progress report to the institute, which will report, annually,  overall findings on industry progress.

Investment consulting firm Verus Advisory Inc. is the latest company to sign the DEI Code. Other signatories include the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, the Massachusetts Pension Reserves Investment Trust and Northern Trust Asset Management.

“The DEI Code provides an actionable framework for improving DEI outcomes in our industry,” Verus CEO Jeffrey MacLean said in a statement. 

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