(mis)Conduct, Money & Reputation

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ESG, and specifically sustainability, is an increasingly controversial topic for investment managers, with diverging regulation in Europe, the US and UK, and rising numbers of reputational hazards to navigate. Many fund companies are removing phrases like “ESG” and “sustainable” from product names, whilst downgrading the obligations that these funds have to the principles of ESG. At the same time, it seems that many investment businesses have been overstating their sustainability credentials, and at least two firms have been fined over $25 million in recent years for making false claims.

In this episode, we explore the increasingly widespread issue of misconduct surrounding ESG. From the companies that have fallen foul of the regulations and the regulatory trends, to the challenging act of maintaining a good reputation in an environment where ESG appears to have as many detractors as it has advocates.
Disclaimer:

The content in this podcast is for informational purposes only. It does not constitute legal advice and is not intended to establish an attorney-client relationship, nor is it intended to suggest standards of care applicable to attorneys in any given situation. This podcast is considered attorney advertising. Prior results do not guarantee a similar outcome. Any views, opinions or comments made by external guest speakers - are not to be attributed to Katten Muchin Rosenman LLP and/or Katten Muchin Rosenman UK LLP or their individual attorneys/lawyers. All rights reserved.

Recorded and produced at the Lansons Studios

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Building a business with a diversified employee base is no longer a nice to have, its necessary, both in terms of talent retention but client retention as well. The regulator is also insisting that financial services firms put in place evidence-based diversity and inclusion strategies that take into account the individual firm's progress on these efforts.

The reputational hazards are many. Reputation is mostly driven by behaviour and if you claim to building a diverse team when you aren’t, the regulatory and reputational fall out are clear. And in a world where the war for talent is raging harder than ever, firms that that fail to develop progressive employment strategies are likely to fall behind.

Furthermore, the evidence is stark. Diverse teams outperform.

In this episode, Neil Robson, partner with law firm Katten, and David Masters of reputation specialists Lansons/Team Farner delve into the increasingly knotty area of DEI, from the perils of over claiming and under delivering, to the increasing scrutiny around non-financial misconduct.

Disclaimer: The content in this podcast is for informational purposes only. It does not constitute legal advice and is not intended to establish an attorney-client relationship, nor is it intended to suggest standards of care applicable to attorneys in any given situation. This podcast is considered attorney advertising. Prior results do not guarantee a similar outcome. Any views, opinions or comments made by external guest speakers - are not to be attributed to Katten Muchin Rosenman LLP and/or Katten Muchin Rosenman UK LLP or their individual attorneys/lawyers. All rights reserved.

Recorded and produced at the Lansons Studios

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From trawling The Eighth Day shop on Manchester’s Oxford Road in a long black cloak and dress to chairing the UK’s largest in-house pension asset manager at USS via one of the first graduate trainee schemes for stockbrokers, Sarah Bates has a long, storied and hugely successful career in the City and beyond. She has been a fund manager, a CEO, and has chaired some of the UK’s biggest pension funds.

Sarah was also one of the founders of The Diversity Project in 2015 which continues to make significant strides in improving DEI in the UK’s savings and investment sector.

But what makes Sarah tick, and what is her take on the state of regulation and reputation in today’s asset management sector.

In this episode, Neil Robson of law firm Katten, and David Masters of reputation specialists Lansons Team Farner talk to Sarah about the challenges of improving DEI in the investment industry, the state of current regulation and what asset managers could do to improve their reputation with clients.

Recorded and produced at the Lansons Studios

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Cybersecurity is an issue which continues to dominate headlines, concern investors and have substantial and very real implications for asset and wealth managers. In the data rich world of investment management, understanding the implications of cyber breaches has never been more critical.

In this episode, David and Neil examine high-profile breaches such as the Equifax data scandal and NHS ransomware attack. They explore why these failures should be seen more widely as misconduct, common myths about cybercrime, debunking misconceptions about its targets and motives and how others are addressing these challenges as digital threats evolve and in light of the recent CrowdStrike IT outage.
For most financial firms it’s about when and how often these attacks will come, not if.

This episode provides a crucial guide for asset managers and financial services professionals in preparing for, mitigating against, and avoiding reputational fallout required when things go wrong.

Recorded and produced at the Lansons Studios

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As social media and generational shifts reshape the world of investment and financial advice, asset managers are facing a new and growing challenge: finfluencers. These social media personalities represent both opportunity and risk. Active on platforms like Instagram and TikTok, they can make finance more accessible, but also present reputational challenges when they promote financial products without following regulations. In this episode, David Masters and Neil Robson together with Emily Allen in the US, explore the impact of finfluencers on the asset management sector, focusing on the UK and US regulatory risks and misconduct issues they can trigger.

With cases like Kim Kardashian’s $1.26 million fine for promoting EthereumMax, the trio unpack the risks posed by finfluencers and discuss what asset managers can learn to protect their brands. Tune in for insights on safeguarding reputation in an age where financial advice is just a click away.

Recorded and produced at the Lansons Studios