As many of you know, the Chartered Financial Analyst Institute is a group that takes itself extremely seriously. While MBA programs may be content to have any old degenerate representing them, Team CFA holds its members and would-be members to a much higher standard. The organization has zero qualms about throwing one of its own out on his or her ass, and in the past has stripped charterholders of their designations or "publicly censure[d]" them (via CFA Institute Magazine), and rained down fury on people in the midst of attempting to earn their charter, for infractions that include:
- Writing erotic novels
- Touching one's ears
- Violating the CFA Institute Rental Vehicle Policy 1
So it probably shouldn't have come as much of a surprise that this had to happen:
CFA Institute, the nonprofit organization that confers one of the most highly regarded credentials for financial professionals, replaced its chief executive last week after its board learned of a relationship between the executive and a senior staff member, said people familiar with the matter. In March, the group said John Rogers, its CEO for five years, would step down in August, without citing reasons. Last week, it told members in an email that Mr. Rogers had come forward after the announcement of his resignation with a "personal matter that represented a potential conflict of interest."
Mr. Rogers left the organization June 3, Charles Yang, the institute's chairman, said in an interview. Mr. Rogers's departure followed an investigation by board members into his relationship with the senior staff member, said the people with knowledge of the situation...While the organization's code of conduct doesn't prohibit relationships between staff, a concern on the board was that potential conflicts from the relationship could open CFA Institute to litigation or public criticism, people familiar with the situation said...The leadership change is a sensitive topic within the institute, which on its website defines its mission as "promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society."
1. "On 23 March 2010, a Hearing Panel found that Dirk Laschanzky (USA), a charterholder member, made misrepresentations to CFA Institute on his expense reimbursement vouchers. First, he claimed miles driven from his home to Charlottesville, Virginia, for examination grading when, in fact, he flew by private airplane. Second, he claimed tolls, although only airport parking charges were paid. Third, he claimed, in violation of the CFA Institute Rental Vehicle Policy, a rental vehicle for personal use during examination grading."↩