SANTIAGO – Paul Smith, president of the CFA Institute, said in a wide-ranging interview with EFE on investment and the capital markets in Latin America that governments should ease regulations to boost the regional economy.
“Latin America’s financial regulators should reduce controls if they want to bolster the region’s economy,” Smith said.
Smith visited Chile for the first time since taking over as president of the CFA Institute, which sets standards for global investment professionals, in 2015.
The expert called on the investment industry to take steps to increase confidence in the sector and promote the profession in the South American country.
“A little less control and a little more growth is the recipe for promoting economic development in Latin America,” Smith said, referring to the region’s regulatory environment.
The job of regulators in developed countries is to “exercise control,” while those in developing countries face a situation that is “a bit more complicated” because they must stimulate the market and simultaneously control it, Smith told EFE.
Regulators in Asia’s emerging economies have adopted the “balanced” model, seeking to stimulate economic growth and help businesses grow, the CFA Institute president said.
“The Asian economies are growing faster than Latin America and this is one of the reasons why they are doing so,” Smith said.
Regulators in Latin America are too focused on preventing all “bad behavior,” a concern that leads to “zero economic growth,” Smith said.
Paul Smith joined the CFA Institute in 2012 as managing director for the Asia Pacific region, overseeing the group’s expansion into China and India.
The CFA Institute’s goal is to raise professional standards in the investment industry and promote ethical behavior and excellence among those working in the sector.
The institute has more than 138,000 members in 151 countries, with 131,800 holders of the CFA designation, and 147 member societies.
The CFA Institute has 60 accredited members in Chile, where 270 other people are studying to earn the designation.