Education Standards for Financial Planners and How It Should Be Done

Education Standards for Financial Planners and how it should be done
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Table of Contents
Table of Contents................................................................................................................................2
Introduction.................................................................................................................................................3
Ethical Behavior and Financial Planning......................................................................................................4
Ethical theories in education standards of financial planners.....................................................................5
Higher education in financial behavior and ethical behavior......................................................................7
Behavioral biases and issues in teaching financial planners........................................................................9
Bloom’s Taxonomy....................................................................................................................................11
Standard for Financial Planner’s Education...............................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
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Introduction
The Global Financial Crisis (GFC) environment in Australia have restored the financial markets
and have also rebuilds confidences in the financial planning industry. The investigation which is
going on in the financial planning industry has confronted the ethical issues. Further challenges
have come across due to high profile failure of the financial products as well as services
providers like storm financial in 2009, Opes Prime in 2008 and also profit-driven culture driven
in the banking sector of the financial industry. Thus, greater highlights are given on ethics within
the financial planning professions (Australian Competition & Consumer Commission, 2010).
It had been researching by ASIC (2010) that ethical values are essential for consumers while
selecting financial planners. Since it demonstrates the essentiality of ethical values in financial
planners thus moral development of financial advisors in Australia was found to be lower than
that of the adults. It is also stated that those financial planners with higher education level are
found to possess higher moral development. Thus, the main objective of this research is to
analyses what can be done so as to improve the ethical development of the financial advisors in
Australia and also the role of educators.
By reviewing the challenges related with post-GFC environment, increased education as well as
redesigning of the curriculum so as to encourage the ethical behavior and principle thinking
could be the effective solution so as to improvise the ethical development of the financial
planners. Formal education is termed as a powerful interpreter of the moral judgments which is
the precursor for the ethical behaviors (Australian Competition & Consumer Commission, 2010).
since the main purpose of this research study is to analyses the education standards for the
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financial planners and also how it should be done so factors that contribute to producing of an
ethical financial planner will be analyzed. This paper will explain the scenario of the current
climate of ethics education in financial planning in Australia and will also make possible
recommendations which are based on the results.
Ethical Behavior and Financial Planning
The fast pace changing of the societal nature needs responses for the emerging ethical issues
from key stakeholders prevailing in the society mostly by the educators who possess a major role
in enhancing the social as well as professional developments of the students. There is a number
of universities which try to produce financial planners who are able to solve all the issues
prevailing in the contemporary business. It is important that the knowledge of the financial
planner is being supported by ethical reasoning along with decision-making skills as customers
have full trust in them (ASIC, 2010). When the financial planners respond to such issues than it
is expected that financial planners who are concern regarding ethical issues will take into
consideration the interest of the corporately responsible business. Ethics education and also
awareness is termed as the potential mitigation ways to avoid issues associated with organization
and employees which begins by making of unethical decisions. Various researches which is done
within the accounting, psychological, business and teaching have given major emphasis on ethics
educations. It is analyzed that ethical behavior is highly required in the financial managers so as
to understand the effects of the ethical decision making in the clients. It can be stated that
financial planners cannot achieve success and cannot build effective solution without achieving
ethical knowledge and behavior.
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