Ethics and Professionalism in Financial Advice

Running head: ETHICS AND PROFESSIONALISM IN FINANCIAL ADVICE
ETHICS AND PROFESSIONALISM IN FINANCIAL ADVICE
Name of the Student
Name of the University
Author Note

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ETHICS AND PROFESSIONALISM IN FINANCIAL ADVICE
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................5
Answer to question 3:.................................................................................................................9
Answer to question 4:...............................................................................................................12
References................................................................................................................................16

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ETHICS AND PROFESSIONALISM IN FINANCIAL ADVICE
Answer to question 1:
(a)(i) The relationship that exists between the financial adviser, as well as the client, can be
influenced by Uncertainty as well. It is one of the factors that can develop a biased
relationship between both parties (Legislation.gov.au, 2019). Rationalization may be defined
as a situation in which the financial adviser acts and makes a final verdict that is in favor of
his client's best interests and thus the adviser ends up in taking decisions that are not at all
ethical.
Decisions may be frequently made by both the adviser as well as the client under
conditions of uncertainty. The client often makes unethical decisions and they are not aware
of the outcome of the alternative that can be used by the client as he does not know the
consequences of the alternative chosen. The decisions are ultimately made when he has to
choose and see what happens. The uncertainty makes it difficult for some people to make
ethical decisions because of some commitments made.
The rationalization is mainly working only for self-interest. Well, we can just say that
uncertainty are mainly :
● Situations that often occur out of the conscious mind.
● It can also reduce the feeling of one's responsibility towards something and make a
person look into negative aspects of behavior.
● People can also make their rational behaviour accepted by both self and others as
well.
(ii) Unethical code of behaviour is a situation where people or to be more specific a
financial adviser goes through various instances where he is needed to develop an

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ETHICS AND PROFESSIONALISM IN FINANCIAL ADVICE
understanding of ethical decision making, often with the help of certain hypothetical
circumstances that offer quite frequently in an organization.
Legal and genuine advice should be provided by the adviser to the client no matter
what the situation is so that there are no uncertain happenings in the future that may lead to
the situations that can harm the interests of the client in future
(Financialservices.royalcommission.gov.au, 2019). Legal interpretations should be advised
by Jim to Dino that comply with Financial Planners and Advisers Code of Ethics (FASEA
Code of Ethics). These are designed to challenge a person to work according to what he
thinks is right to do under certain circumstances. A regulator is only responsible to guide his
client about the regulations that are being by the FASEA Code of Ethics and clarifications are
provided by him as well (Sharpe 2018). The clarifications on various topics are further sought
by the Association of Financial Advisors and several standards are also applying in the
process that is particularly Standard 2, 3, 5 and 6.
When Jim is interacting with his Client Dino it is the responsibility of Jim to provide a
response that is ethical in all respects that cannot be questioned by anyone later and he should
also make a note to apply the best possible ethical consideration at a particular point in time
when Dino asked him to backdate the legal documents
(Financialservices.royalcommission.gov.au, 2019). Although an adviser must help his client
achieve some goals but not through unethical means.
Standard 1 states that Jim should act following all applicable laws that include the
code of FASEA as well. No matter what, but he should not try to avoid the intent laid by the
legal regulations.