Wall Street group CFA finally ditching DEI — but still grappling with internal chaos

Core Viewpoint - The CFA Institute is shifting away from its previous Diversity, Equity, and Inclusion (DEI) initiatives, renaming its code to "Inclusion Code" and removing references to race and gender, reflecting a response to legal challenges and member feedback [1][2][4]. Group 1: Changes in DEI Code - The new "Inclusion Code" eliminates the requirement for financial professionals to consider intersectionality in their practices [2]. - The terms "race" and "gender" have been removed from the code, which now emphasizes creating a workplace where employees feel valued and respected, regardless of their backgrounds [3]. - The institute's decision is influenced by recent court rulings regarding DEI practices, indicating a shift in the legal landscape [4][10]. Group 2: Background and Context - The CFA Institute previously adopted a controversial DEI code in 2023, which faced backlash from its members [5][8]. - The organization has a membership of 200,000 professionals managing trillions of dollars, highlighting its significant influence in the financial sector [5]. - The shift in policy comes amid broader corporate trends where DEI initiatives are becoming less popular and facing legal scrutiny [9]. Group 3: Internal Governance Issues - There is internal dissent regarding CEO Margaret Franklin's leadership, with calls for her removal due to perceived governance lapses and the handling of the DEI program [11][14]. - A former chief marketing officer of the institute has been charged with embezzling approximately $5 million, raising concerns about financial oversight within the organization [12]. - Members express a lack of confidence in the board's selection process and governance transparency, although the institute's spokesperson defends the board's election process [14].