Where were you on 11 December 2008, the day Bernie Madoff was arrested? I was probably glued to coverage of the unfolding financial crisis, with the collapse of veteran investment house Lehman Brothers at the pinnacle (also happening in December 2008). Indeed, as that year drew to a close, it seemed as if the global financial system was falling apart—as if the efficient market about which we’d been taught had finally been exposed as a myth.

You could call the financial crisis a watershed moment for financial research: we learned (the hard way) that there is no substitute for the kind of due diligence that is the hallmark of the CFA charterholder designation. In this issue of The Analyst, Harry Markopolos, a key whistleblower in the Madoff fraud case, tells us why he thinks CFA charterholders have the tools to make sure nothing like this ever happens again. As he explains to interviewer Irene Goryn, CFA, charterholders have a unique and valuable gift: analytical skills they can (and should) always use.

This is also a substantial advantage in an investment industry that Markopolos believes is built primarily on trust rather than hard numbers, on the outsourcing of due diligence rather than solid research. The growing number of CFA charterholders promises to strengthen the industry and reduce the potential for fraud in the future.

It’s worth noting that Markopolos doesn’t give many interviews. In fact, the only reason he agreed to talk to us is because he thinks CFA Society Toronto is a role model for other CFA Societies around the world. Not a bad endorsement.

On a final note: are you interested in writing for The Analyst? If so, contact us by e-mail at theanalyst@cfatoronto.ca. We’re always looking for fresh ideas and new voices on the challenges and opportunities faced by CFA Society Toronto members and charterholders.