By opening up our business and our processes to independent scrutiny, to ensure we can meet the very highest standards set within our industry.
In 2019 we wanted to become members of CEFEX (the Centre for Fiduciary Excellence) and after our assessment in July 2019 Magus is now certified for Investment Advisor Fiduciary Excellence, placing us globally amongst an elite group, with only a handful of firms achieving this certification in the UK.
This certification looks at how we run our business, how we run money and ensures we have the right systems, processes and controls in place. Having a clear investment philosophy with robust processes that are embedded across our entire business meant that we passed our assessment with flying colours – in fact, a direct quote from CEFEX:
— DAVID VRIESENGA – ANALYST, CEFEX
What is CEFEX?
CEFEX is an independent global assessment and certification organisation. It works closely with investment fiduciaries and industry experts to provide comprehensive assessments to improve risk management for investors.
CEFEX certification helps determine the trustworthiness of investment fiduciaries.
Why be CEFEX certified?
In order to be certified, we have to adhere to the CEFEX standards, which represent the best practices in our industry. We had to complete a ‘standards based assessment’, which included document reviews, client file sampling, on site visits and interviews with senior representatives. But it doesn’t end there, we will be subject to ongoing, regular audits – which are supplemental to the oversight from financial regulators.
However, these audits are designed to maximise the professionalism of our firm – management will be required to keep up-to-date with best practices, which fosters a culture of continuous improvement, increasing transparency and accountability.
Not only is the good for all of us within the Magus business, but it clearly demonstrates to our clients that we are committed to the very highest professional standards and that we place their interests first.
In this time of change in the financial industry, trust is critical, it’s not good enough to simply say ‘trust us’ – having this certification shows we adhere to our ethical and legal duties, we place our client’s interests above our own, with the 2 most fundamental duties of fiduciaries being loyalty and care.
What is a fiduciary?
The highest legal duty of one party to another – being a fiduciary firm requires us to be bound ethically to act in our clients' best interests. An investment fiduciary is responsible for the management of the assets of others and is therefore in a special position of confidence, reliance and trust.
The duty of loyalty requires fiduciaries to act in the best interest of those they serve and to avoid or properly manage conflicts of interest.
The duty of care is focused on good judgement and due diligence and includes well documented processes, encompassing numerous obligations. It also means acting with the care, skill, prudence, and diligence.
View our certification
Watch the CEFEX video "What does it mean for an advisory firm to be CEFEX-certified?"