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Collective Investments
Tuesday, August 1, 2000
A promise

Association of Unit Trusts (AUT) members recently adopted a formal Code of Ethics, committing them to conducting their business “in accordance with the law, the highest standard of ethical behaviour and a sense of fair play.”

A number of principles are enumerated as broad guidance for members who include all South African unit trust management companies and the vast majority of foreign collective investment schemes.
AUT members are encouraged to include confirmation of their membership in all marketing literature and advertising.

Code of ethics

The successful implementation of these principles is dependent on the conduct and good judgment of each member. It is expected that all members will conduct themselves in terms of ethical values that will enhance the reputation of the association.
The principles stated below are provided as broad guidance for a variety of situations. As members’ of the association, we undertake to:

• comply with any Act, regulation or long-term industry agreements relating to the unit trust industry
• operate in the utmost good faith, with integrity, and to observe the highest standards of business and professional conduct and practice accordingly
• ensure that statements made by, or on behalf of members, whether in advertisements or otherwise will be factual and not contain misleading or extravagant claims as laid out in the Advertising Code of Practice
• commit to fair value and quality for our customers
• respect the confidentiality of our clients and prospective clients, putting their interests above our own and advising them without bias and without regard to personal advantage
• take care to render services and advice only when adequately trained, informed and knowledgeable to do so
• avoid any malicious acts or statements, which may be damaging to the reputation and or integrity of competitors or other members of the unit trust industry
• support and further the objectives of the Association of Unit Trusts, to uphold principles and, at all times, to abide by its Constitution.

Copyright © Insurance Times and Investments® Vol:13.7 1st August, 2000
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