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Inclusion in Finance

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A rapidly evolving finance industry serving an increasingly diverse society demands new capabilities and a more diverse workforce and inclusive workplace cultures.

In 2022 CFA Institute launched the first voluntary Inclusion Code, available for investment industry organizations in the United States and Canada. Inclusion Codes for investment organizations in the United Kingdom, Australia, Singapore, and the Netherlands are also now available, with codes for additional markets to follow.

In a highly competitive industry, the Inclusion Code provides global organizations with an inclusive framework in each market where they operate, while still respecting local legal, regulatory, and cultural practices. The Inclusion Code is published by region, or market, where relevant, with specifically designed Implementation Guidance for each region or market.

External Motivations

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Regulators and Policymakers

In many markets, inclusion and sustainability are increasingly central to regulators interests in conduct and culture. As this regulatory momentum grows, CFA Institute is contributing to this effort through practical tools such as the Inclusion Code and the ESG Disclosure Standards for Investment Products -- both designed to help the investment industry demonstrate compliance and accountability.

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Investor Demand

Demand from large investment consultants for inclusion data and progress is on the rise, including metrics on asset managers’ investment teams in requests for proposals. According to a CFA Institute Earning Investors’ Trust study 76% of institutional investors and 69% of retail investors have interest in investment design and products that incorporate sustainability, and factors to create a more inclusive society.

Teams Dominate

Many firms are recognizing that inclusive teams can be a key part of their success. For example, some firms are shifting from the “star portfolio manager” model to investment teams staffed with a variety of perspectives, which leads to better outcomes in complex decision making.

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Awareness of Biases

The investment management industry must continue to think more deeply about how behavioral biases affect decision making more broadly and the benefits of inclusion in overcoming group-think. We all have something to learn when it comes to behavioral biases. Plus, learn about how biases can negatively impact investment decisions here.

Benefits of Inclusion in the Workplace

  • Innovation

    Finance firms that foster inclusive cultures are more open and innovative.

  • Representation

    Firms that promote inclusion also recognize the importance of responding to changing client demographics with a more varied professional team.

  • Competition

    An inclusive business culture enables firms to better serve prospective and current clients and to better compete for top talent.