Ethics And Professionalism | Assessment

Running head: ETHICS AND PROFESSIONALISM
ETHICS AND PROFESSIONALISM
Student’s Name
University Name
Author note

1
ETHICS AND PROFESSIONALISM
Introduction
The financial planning has seen significant changes over the past years especially with
the introduction of the Future of Advice reforms and the professional standards set up by the
Financial Adviser Standards and Ethics Authority (FASEA). The elements of the code introduce
new requirements and require one to adapt to the advices, systems and processes to comply with
it. The role of the code of ethics is to provide a frameworks or set of requirements along with the
legal requirements and the expectations of the regulators (Advani, 2015). The overall intention of
the FASEA code is to improve planner engagement with the customers and the clients and
enhance their understanding, capability, and experience (Fasea.gov., 2020). The leaders and the
researchers from all across the globe have seen significant shift in the attributes that people want
to see in a leaders. The financial service industry needs to consider the situation. There are severe
deficit in ethical leadership in the financial sector. The mission and vision statements, various
rules and regulations as well as the code of ethics have failed to be an effective framework for
ethical discernments (Barroso Castro et al., 2014). The business organizations and the
individuals that’s demonstrate well defined ethos are known to be ethotic. Ethotic leadership is
considered as the ability of the leader to inspire and serve other members by incorporating a well
defined framework integrating leadership, governance, and stewardship. However, it has been
perceived that the financial services sector is comparatively more unethical as compared to other
areas of the business. The purpose of this report is to analyze the issues in leadership in the
financial service sectors considering the code of ethics. It assesses and analyzes the components
of FASEA code of ethics and provides arguments. Lastly, it summarizes the main points and
concludes the assignment.

2
ETHICS AND PROFESSIONALISM
Discussion and analysis
Issues in leadership in the financial services sector considering the Code of Ethics
According to Belias and Koustelios, (2014), the financial sector is highly regulated and
there are evidences of bad transactions which has been identified in the past years. It has also
been analyzed that there had been bad transactions in other less regulated industries. There had
been ethical lapses among the leaders in the financial sectors. As mentioned by Cherian and
Farouq, (2013), there has been a global financial crisis concerning the financial advisers inducing
people to enter into deals from which these bankers are benefited. The leaders in the financial
sector have failed effective risks management, proper supervision, and control. As per the
arguments by CHO et al., (2016), this has been blamed due to poor leadership strategies
implemented by the leaders and the managers of the financial institutions. The challenge lies in
confronting the financial systems of operations and leadership crisis. It has been argued that the
problematic phenomena in the financial sectors are immorality and irresponsibility of the
financial leads. The financial leaders use their first financial handouts to pay huge amount of
bonuses to others and themselves. As per Herzig and Moon, (2013), it has been identified that
they are just continuing to act in the way they have in the past, without considering the impact of
their approach and behavior. As per Central Bank of Nigeria Annual Report and Statement of
Account, there are several banks suffering from financial squeeze, however no much change has
taken place in those affected institutions. It has already been accepted that professional
leadership is a scare resource. Furthermore, there are changes in the fundamental ways of
banking. The financial sector has been undergoing rapid transformation considering the level

3
ETHICS AND PROFESSIONALISM
competition, and efficiency of operations, risks management, and asset and liability management
(Furnham, Hyde & Trickey, 2014). It is the inability of the banks or the financial institutions to
protect themselves from the falling margins due to excessive presence of competition in the
market. As mentioned by Hunsaker, (2014), the technological changes also impact the operations
in the banking sectors. This has changed he general way of functioning in the financial sectors.
There are new prudential norms, standards and benchmarking emerging in the industry against
the international standards. Introduction of new advanced technology, formation of skills and the
intellectual capital formation are highly essential in the financial sector. There are various
innovations in technology as well as the communications. As per Maher, L. Y. N. N. E. (2014),
adaptation to technology has become a necessity for the financial institutions. Retaining the
customers has become the primary concern of the financial institutions. The issues lie with the
emerging scenario and adaptation of required technology. Leadership needs to overcome the
issues in the financial sectors of technical mismanagement, mismanagement, fraudulent
activities, and lack of compliance to the code of ethics poses to be a threat in the financial sectors
(Herzig & Moon,(2013). The technical mismanagement such as poor lending policies, improper
controls within the operating systems, over extension, lack of awareness about the code of ethics
among the financial executives tends to be an issue in the institutions. The employees and the
executives are unaware about the code of ethics and its implications. The leaders of the financial
sectors have failed to provide adequate training to ensure that the executives follow the codes of
ethics in dealing with the ethics and the operations of the financial institutions. Moreover, as per
the arguments by Hodges and Howieson, (2017), there are evidences of desperate
mismanagement; the executives pay rates above the market rates and charge high interest rates
from the borrowers. The anti banking activities and policies have failed to meet the overall