Gb08_engl Umschlag:GB 2005 - DVFA

the board
Ladies and Gentlemen, Dear Members,
Report of the Board_
In these trying times, being an investment professional is no easy task. The imbalances
in the structure, trading and distribution of certain complex products have unleashed a
crisis that resulted not only in a severe strain on the financial industry itself, but has
impacted nearly every other sector of the economy as well. In the wake of this, the entire
world is now experiencing the greatest economic crisis in more than 50 years.
Government and citizenry have been called upon to step in and rescue the banking and
financial system from collapse, as mutual trust, especially within the financial system,
has broken down completely over the past several months.
We expect the steps taken towards stabilization to prove effective. The governments
and central banks have largely been proportionate in their response. The mistakes
made during the Depression era of the 1930s have not been repeated. And, lessons
have also been drawn from the situation in Japan over the past 20 years. Of course, it
was a cardinal error to stand idly by as Lehman Brothers failed.
Nevertheless, it must be remembered that the financial industry was responsible for
the crisis, in conjunction with misguided deregulation and easy-money policy. Thus,
the financial industry is now called upon to rebuild mutual trust among its members,
along with the confidence of their customers and, most importantly, the faith of society
in the financial system as a whole. A key element in this context will be to bring the
relation between risk and reward into balance, for both the customer and the financial
services provider. Consequently, the focus must be on methodological and ethical
standards for professionals in the industry.
DVFA, as a professional association, along with its members and Committees, seeks to
contribute as much as possible to this effort. We can only repeat what was stated last year
at this point: "We believe that market participants and investment professionals will have
to place greater emphasis on addressing informational deficits and attaining a comprehensive
understanding of the interactions, interrelationships and risks of global markets
going forward. Dealing with the financial crisis will require investment in professional
qualification as well as deliberate and sustainable implementation of ethical standards."
In 2008, our Committees worked on the topics: rating standards, performance measurement
standards, fairness opinions and REITs legislation. The Committees met regularly
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