Incoming chief executive of the Investment Management Association Daniel Godfrey says the trade body will work with members and the FSA to prevent conflicts of interest.
Godfrey says: “The integrity of the management of conflicts of interest is at the heart of trust in asset management and the FSA has clearly identified important issues of concern.
“One of the most important guiding principles of asset management is the need to act on behalf of customers and to ensure that business and investment decisions are driven by putting their interests first.”
Godfrey says the trade body will work with members and the regulator to develop a framework supporting firms on how to manage conflicts of interest.
He adds: “The objective is to constantly raise the level of minimum standards towards that of best practice.
“Obviously, even minimum standards must be fully compliant with law and regulation but it is also of commercial benefit to be able to demonstrate robust processes that are applied and monitored with integrity.”