CFA Institute renames DEI code to Inclusion Code amid leadership tensions and governance questions

The CFA Institute announced on Tuesday that it has renamed its Diversity Equity and Inclusion Code of Conduct to the Inclusion Code, saying the new label better describes its goals and aligns with evolving legal and regulatory considerations.

The updated document drops calls for money managers and financial advisers to factor intersectionality into hiring and investment decisions and removes explicit references to race and gender. Instead, it urges employers to create workplaces where employees feel valued, respected, supported, and able to participate regardless of their attributes, perspectives, identities, and backgrounds. The institute attributed the change to shifts in the legal landscape surrounding DEI and said the Inclusion Code is designed to support current and prospective signatories in their talent efforts. Our work with the investment industry is focused on programs and initiatives designed to improve the profession, to better serve clients, and to enable an inclusive workplace, a CFA spokesman said.

The move comes after On The Money reported in recent months on the outreach and scope of the CFA Institute’s DEI efforts and how they intersect with court rulings and legal scrutiny. The organization, which administers the Chartered Financial Analyst exam and has about 200,000 professionals in its orbit across major asset managers and markets, says the change reflects a three-year arc since the first version of the voluntary code was launched.

Inside the CFA Institute, a leadership dispute has flared over CEO Margaret Franklin’s tenure. Chris Cutler, a long-time member, has circulated a petition urging her removal, citing what he calls governance lapses and a lack of transparency around how the board makes policy, including the DEI strategy. Cutler has also criticized what he describes as an opaque board-selection process and highlighted a separate criminal case involving the organization’s former chief marketing officer, who has been charged with embezzling about $5 million to pay for club memberships, travel, and other personal expenses. The Manhattan District Attorney said the case will go to trial on Oct. 7; the marketer denies the charges.

We have no confidence in the opaque selection process for Board Directors and having $5 million stolen by a CEO’s direct report and having no visible consequences for the CEO, Cutler said. Also, our members are financial analysts, not experts on social movements. The CFA Institute declined to discuss personnel matters directly but reiterated that its board of governors sets policy, not the CEO, and that all members can vote in board elections. The spokesman added that all proposed candidates were elected with more than 75% of the vote, arguing that the governance framework remains transparent and accountable.

The institute’s leadership shift and governance questions come as industry watchers watch how DEI initiatives fit within the broader legal and political environment. The CFA Institute has long described itself as the gold standard in ethics and transparency in finance, and it seeks to balance member input with policy decisions that affect thousands of professionals who rely on the CFA designation for career advancement and industry norms.

As the market and corporate culture continue to scrutinize DEI programs, the institute says its focus remains on programs that improve the profession and better serve clients, while maintaining an inclusive workplace where practitioners can thrive. The discussions around leadership, governance, and the scope of DEI efforts are likely to continue as the organization navigates its internal dynamics and external legal considerations.