Unión Capital AFAP S.A. has completed a year-long project by a global public accounting firm that tested the establishment of its policies and procedures for complying with the CFA Institute Asset Manager Code™ (the Code).

The Code, which outlines ethical and professional responsibilities of firms that manage assets on behalf of clients, was adopted by Union Capital AFAP in 2018 as a benchmark for the high level of conduct to which they adhere. CFA Society Uruguay has a strong relationship with the organisation. Ignacio Azpiroz, CFA, is the Chief Investment Officer of Unión Capital, founder of CFA Society Uruguay and a member of its non-executive board. Azpiroz and the CEO of Unión Capital, María Dolores Benavente, were key to driving this audit forward. 

Barbara Mainzer, CFA, President, CFA Society Uruguay explained: “Unión Capital was the first company in Uruguay, and the first pension fund in South America, to adopt the CFA Institute Asset Manager Code. In 2018, we hosted an event that recognized all pension funds and mutual funds in Uruguay that had adopted the Code. At the event, the local regulator gave a speech and said that while he supported the Code, he could not confirm if companies were effectively complying with it. He suggested an independent audit company confirmed compliance and once again Unión Capital led the way and undertook this engagement.”

The global public accounting firm conducted an agreed-upon procedures engagement, which included reviewing Unión Capital AFAP’s policies and procedures under international standards applicable to related services. The engagement culminated in the issuance of a professional report to Union Capital stating the results of their testing. The accounting firm’s review procedures included techniques of inquiry, observation, focus groups, and analysis of documentary evidence. 

“Union Capital and our shareholder, Banco Itaú, believe that the success of a company depends on its ability to lead ethically and responsibly,” said Ignacio Azpiroz, CFA, Chief Investment Officer of Unión Capital AFAP S.A. “We take our adoption of the Asset Manager Code very seriously and felt an independent perspective on our policies and procedures for complying with it would make us confident that we are delivering on our promise to put clients’ interests first. We are proud to be the first firm to incorporate independent testing in this way and are reassured that we are living up to our commitment and our own high standards.”

Karyn Vincent, Senior Head, Global Industry Standards, CFA Institute said, “We applaud Unión Capital AFAP, and all firms that have adopted the code, for displaying a steadfast commitment to professional ethics and putting investors first. Union Capital’s decision to undertake this engagement is exemplary of their dedication to protecting clients’ interests and desire to uncover any areas for enhancement.”

Barbara Mainzer, added: “Voluntarily submitting to the first comprehensive review is truly a milestone. We are proud that once again a company from Uruguay is leading the way in establishing high ethical and professional standards.”