The FASEA Code of Ethics Question and Answers 2022

Running head: BUSINESS ETHICS
Business Ethics
Name of the Student
Name of the University
Author Note

1BUSINESS ETHICS
Question 1
The FASEA Code of Ethics
Financial advisers provide vital guidance in order to manage the funds of the common
people in a much better way. The financial advisers’ work is to ensure that the common
public is able to have a better standard of living and to protect and save them from any sort of
financial crisis during the time of emergency.
From the above case study, it can be inferred that Sam has very less experience of a
financial advisor as he was a para-planner. As she was closely associated with one of the
advisors of the firm, she was able to get the job. Another major reason for Sam to get the job
was her educational background, which she had pursued from a reputed institution. On the
contrary, Carly, the mother of Sam has been a financial advisor for the past twenty years and
thus, she has immense knowledge and knows about the entire process of work.
However, the decision taken by Sam was highly influenced by various essential
barriers to ethical decision making. In the initial days of her career, she had been asked to
provide financial guidance to the two the granddaughters of two very rich people, Kelly King.
Sam had the impression that as Kelly belongs from a wealthy family, she has enough
knowledge about the requirements of managing funds. Sam was in a way violating the
business ethics, as she had to take the responsibility of proceeding with their task and provide
them with a clear idea about the entire process as a financial advisor, which was entirely
ignored by Sam due to her in-expertise in this sector.
The FASEA Code of Ethics talks about the standards of the Financial Adviser and the
Ethical Authorities (Trevino and Nelson 2016). The Australian government has made it a
compulsion for all the citizens to follow the ethical code from the year 2020. The FASEA

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Code of Ethics aims at protecting the clients from the various motives of the corporate
industry and help them to overcome barriers that question their well-being (Tsalikis and
Fritzsche 2013).
It was seen with regards to the issue of complying with the standards of the FASEA
Code of Ethics , Sam was violating the Standard 2 of the Code of Ethics. According to that
standard, Sam who is a financial advisor was supposed to provide the best service to the
clients, protect the integrity of the clients and also protect and save them from any further
issue during the course of the entire procedure of management of the funds (Hoffman,
Frederick and Schwartz 2014). Sam, on the other hand was pretty sure that Kelly would not
want any insurance as she belonged to a wealthy family. Thus, during the time of major
financial crisis, Sam would fail to protect her. Sam on the contrary assumed that Kelly would
get protection from her family during the time of crisis, which in turn is the violation of the
Code of Ethics (DesJardins and McCall 2014).
Thus, Sam had terribly failed to follow the Code of Ethics during the time of her
work. The FASEA Code of Ethics was developed for protecting the clients from mishandling
of the funds but in Kelly’s case, Sam had assumed that Kelly would get the protection from
her wealthy family during any kind of financial crisis and she failed to provide the necessary
guarantee and protection of the funds (Michaelson et al 2014). Sam did not understand and
failed to realize the importance of protecting the financial resources of the client. Kelly’s
financial background, had nothing to do with the issue related to managing the funds of
Kelly. Thus, from the case study it can be concluded that Sam had terribly failed to follow the
FASEA Code of Ethics.

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Recommendations given to Sam
As a financial adviser, Sam was expected to provide financial guidance to the clients
and also mention the pros and cons through the process. Thus, she should be ready to listen to
the requirements of the clients in order to provide them with an appropriate financial
guidance, that will be beneficial for them. After analyzing the case study, various
recommendations can be provided to Sam in order to make her an expert in her professional
career.
Firstly, Sam should not take any step considering the financial background of any
client. Sam should provide the necessary information to the client and should not stop the
flow of information on the basis of the financial background of the client. This ensures that
Sam is not violating the Standard 2 of the FASEA Code of Ethics and is being honest and
clear in communicating with the client (Calcagno and Monticone 2015).
Secondly, Sam should pay more attention to the requirements of the client and listen
to what the client exactly wants in terms of protecting their financial resources with the help
of the financial advisor. Sam should thus guide Kelly with her financial resources that will
be able to feed the interest of Kelly and be beneficial for her at the same time.
Question 2
Potential barriers to ethical decision making
The teenagers are given the benefits of the Youth Allowance in order to be able to be
financially independent from their parents. It is often observed that the young group of people
is highly dependent on the financial resources of their parents instead of getting a job for their
own. Thus, the Youth Allowance fund has been started in order to protect the young
generation to get into such a scenario. The teenagers are motivated to show some kind of