The former personal chaplain to Queen Elizabeth II has warned that fund managers must pay more attention to ethics and take a longer-term approach to avoid being dragged into the sort of scandal brewing in the US mutual fund industry.

The Right Reverend Michael Mann, a former bishop and chaplain to the British royal family for more than a decade, was speaking in his lesser known capacity as a board member of Franklin Templeton Investment Funds, the US-owned mutual fund group.