Addressing Ethical Deficiencies in Investment Processes

As a portfolio manager at a mid-sized asset management firm, you are required to adhere to the Asset Manager Code of Professional Conduct. Recently, your firm faced a situation where an internal review revealed that certain investment processes were not fully aligned with the Code, particularly in terms of client communication and decision-making transparency.

Your firm’s investment process is structured to consider both quantitative and qualitative factors, but the findings indicated that some key decisions were made without sufficient documentation or clear rationale shared with clients. Moreover, you realized that some of your team members were not fully aware of the implications of the Code on their daily operations.

Discuss the ethical considerations related to your firm’s investment process, including how you would address the deficiencies identified in the review while ensuring compliance with the Asset Manager Code. Outline your proposed measures for enhancing transparency and documentation in the investment decision-making process, and explain the importance of each measure in promoting ethical standards and client trust.