Paul Smith, the CEO of the CFA Institute, was on CNBC this week to briefly discuss the future of the investment profession. Here is the link to the video.
Below are some highlights from his interview:
- Majority of CFA members feel that the finance industry is at an inflection point
- Structural headwinds include regulation, demographics and the rise of fintech
- The nature of jobs within the finance profession is changing, which is also a challenge for the CFA curriculum as it needs to keep pace with what’s happening within the industry
- Smith believes that a lot of the jobs that used to exist in certain types of active portfolio management are going to be, to an extent, machine done in the future
- He still believes there will be plenty of jobs in the advisory space but fewer jobs in the portfolio management and stock analysis space
If you are interested to learn more, the CFA Institute recently published a detailed study (Future State of the Investment Profession) that explores how the investment industry is changing and suggests ways that industry leaders can transform their business models to adapt and ultimately improve outcomes for investors.