Annotated Bibliography: Code of Ethics for Financial Experts

This annotated bibliography examines the code of ethics for financial experts, focusing on the expectations society places on financial advisors to maintain high ethical standards. The document analyzes four articles addressing professionalism, conflicts of interest, ethical decision-making, and the impact of ethics on the financial planning industry. The articles, authored by June Smith, Frank C. Bearden, Dr. June Smith, and Anona Armstrong, explore topics such as virtue ethics, the impact of conflicts of interest when advising friends and relatives, the role of ethics in financial advice, and factors influencing ethical decision-making within financial planning organizations. The bibliography highlights the importance of ethical training, professional development, and adherence to ethical standards in ensuring client trust and maintaining the integrity of the financial planning profession. The study reveals the challenges faced by financial advisors in balancing client interests with their own and the need for clear guidelines and organizational support to promote ethical behavior. The research also underscores the role of ethical leadership and organizational culture in influencing financial planners' conduct and decision-making processes. The annotated bibliography aims to provide a comprehensive overview of the ethical considerations within the financial planning sector.

Code of Ethics for Financial Experts 0
Title: Code of Ethics for Financial Experts
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Code of Ethics for Financial Experts 1
Executive Summary
This abstract summarizes the four articles by June Smith, Frank C. Bearden, Dr. June Smith and
Anona Armstrong. The brief descriptions of articles is given Professionalism and Ethics in
Financial Planning, Conflicts Of Interest in Providing Financial Planning to Friends,
Acquaintances and Relatives, Ethics and Financial Advice: The Final Frontier and Through the
looking glass-Identifying the factors influencing ethical decisions making in financial planning
organizations has been studied followed by the summary.

Code of Ethics for Financial Experts 2
Contents
Annotated Bibliography...................................................................................................................3
Article 1...........................................................................................................................................3
Article 2...........................................................................................................................................4
Article 3...........................................................................................................................................6
Article 4...........................................................................................................................................8
Summary..........................................................................................................................................9
References......................................................................................................................................11

Code of Ethics for Financial Experts 3
Annotated Bibliography
This structured abstract review the topic of Does society has an expectation that financial
advisers should maintain the high ethical standards in their duties through research studies
conducted by June Smith, Frank C. Bearden, Dr. June Smith and Anona Armstrong.
Article 1
In this article, Professionalism and Ethics in Financial Planning authored by June Smith
advocates on virtue ethics which implies selecting the course of action that a financial advisor
must exhibit which is relevant with this study (Smith, 2009). The misleading and deceptive
conduct of lying to clients and employees and compliance with the financial theory is of high
interest. A financial advisor ensures appropriate investment selection as well as asset allocation.
The financial advisers must act in the best interest of clients. The appropriateness of ascertaining
the clients and employees with financial advice requires risk tolerance assessment and providing
the remuneration structures. The conflict of interest in offering services to clients and unable to
meet with the compliance objectives is dual in nature. Competency standards for the financial
advisors must be adequate to equip with the particular skills and offer financial advice to
multifaceted financial services environment (Joo and Choe, 2017).
The research has revealed young financial advisors to have lesser cognitive, ethical
reasoning and at risk of offering the unethical decisions. Additionally, the introduction of ethical
training to a particular undergraduate degree, the findings also refer that there can be a special
focus in continuing the professional development programs in ethical decisions making.
Financial planners must be exposed to ethical education and induced in ethical climate. It can be
concluded that accreditation to the professional code of conduct like CFA practitioners can add

Code of Ethics for Financial Experts 4
the level of accountability (Bajtelsmit and Wang, 2018). Access to these designations requires
ethics training and continuum professional development in decision making and ethics. By
Adhering with ethical standards, financial planning advisors must agree to uphold the financial
planning interests for the benefit of society. These ethical standards are developed and advocated
through professional standards. As a part of professional commitment, financial planners provide
appropriate disclosures and must bound by the ethical standards especially delivering the
financial planning to customers. Financial advisors must comply with the globally accepted
ethical standards and must adhere in the professional activities. Financial planning requires
integrity and honesty in different professional matters. Financial professionals have been placed
through the position of trust by customers and personal integrity is an ultimate source.
Allowance needs to be made for differences of opinion (Bogan, Geczy and Grable, 2018).
Objectivity requires impartiality and honesty. In order to ensure the objectivity of work,
managing conflict and exercising professional judgment. Professionalism requires showing
respect and behavior with dignity and fellow professionals. Compliance with appropriate rules,
professional requirements and regulations requires in-cooperation with peers and enhancement of
advisors public image. The financial advisors need to maintain the confidentiality of information
and access to those who can authorize it. An association of confidence and trust can be created
on understanding the client information. Financial advisors need to have professional
commitments in a timely manner and delivering and supervising the professional services.
Article 2
In this article, Conflicts Of Interest in Providing Financial Planning to Friends,
Acquaintances and Relatives authored by Frank C. Bearden focuses on the interests of financial

Code of Ethics for Financial Experts 5
advisors that are encountered daily with relatives or friends (Bearden, n.d.). Newbie financial
advisors are required to make the list of friends, relatives and acquaintances for initial business.
As an advisor will be growing in the business, the individual will develop the resulting business
associations and soliciting referrals is possible. The existing association financial advisor can be
direct and honest. The existing conflict can hinder the appropriate advice and objective delivery
(Bearden, 2015). This study has been undertaken to obtain clarity on the subject matter of how
financial advisors experience when generate business with relatives and how does this have an
impact over the industry?
The financial advisor must have the clear picture of the elements required for good practice.
The perspective will allow the leaders to possibly create the environment which can facilitate the
good work. The purpose behind conducting this study is to decipher the conflicts of interests and
can be understood and resolved in some ways. The conflict of interest has been considered in
every situation where the individual often faces the difficulties in discharging the fiduciary duties
which are attached to a given position. There can be a potential or actual conflict between the
personal interest of financial planner and employer, organization. There can be existing or
potential conflict and need to deliver and implement the financial plan. Friends and
acquaintances have been defined with a planner has an existing association. There are few
questions which are required to be answered (Cao and Liu, 2017).
1. Doing financial planning with an individual with whom the financial advisor has an
existing personal association can be the cause of conflict?
2. Does this preexisting association can impair the high quality of work?

Code of Ethics for Financial Experts 6
In order to understand this study, occupation has been taken to define the principle
business which requires specialized knowledge, code of ethical conduct and academic
preparation. The problem statement of financial planning may pose the hindrance in
delivering the quality work. The study has been undertaken for addressing the problems
of degree of conflicts that advisors are experiencing (Yeske, 2010). The Board of CFP
states the professional conduct standards which address the conflicts of interest issue.
Pertinent to this case study, the definition of conflict of interest will include both
financial and personal conflicts. This can reasonably occur in the rendering of
recommendation and services. The code for professional accountability implies conflict
of interest and offers the directive for dealing it with it effectively. A member shall not
disclose the conflict of interest. No directive has been issued by any organization to
rescue itself due to the rising conflict of interest, but need to act on ethical directives
(Rick, 2018).
Article 3
In this article, Ethics and Financial Advice: The Final Frontier authored by Dr. June
Smith advocates professional ethics is a concern of financial advisors who exercise
specialist skills and use judgment in the endowment of advice (Smith, 2010). The
concepts must be consistently applied to the framework of financial advisory and avoid
the mishaps for the customer who is qualified and regulated as the financial planner
(Hellman, 2011). The recognition of the fiduciary association between the individual
holding the financial planner, term and client is necessary. The action can reduce the
confusion who are seeking professional advice and who wants to meet with the confusion

Code of Ethics for Financial Experts 7
that are searching for the financial advice. The relevant competency standards as
described by the act and avoiding the risks cannot be successfully applied towards
advisory associations and services (Raffer, 2004). The ethical issues identified in the
industry as faced by the financial planners in present role are to act towards the best
interests of clients in the face of competing duties and interests. Most of the financial
advisors struggle with the professionalism. The perceived conflict which are exist for the
financial planners lie between desires to provide the appropriate advice on timely basis.
This must be done within the current advisory planners and procure income as well. The
ethical issue which has been identified is to determine the client tolerance towards risk
that is followed by the obligation to be judgmental and honest. There are few issues in the
financial industry, which arise due to the sale of specific financial products within the
existing business and this has a larger impact over the independence and quality of advice
(Rooney, Mandeville and Kastelle, 2012). One of the common issues is compliance
officers have been hampered through the upper management.
The customer analysis data suggest behavior must be regulated internally. A sense
of difficulties regarding the lack of due diligence by the financial advisors group and lack
of responsibility has been observed. The advisory divisions need to ensure financial
planners will be held responsible for unethical conduct. A common observation is top
management and employees blame unethical nature on the external environment such as
pressure from colleagues (Staubus, 2005). There is a greater push towards financial
advisors and introducing the professional standards which can lead to understanding of
professional standards across the different domains. This may lead to administration of
professional standards and understanding the ethical obligations across the different

Code of Ethics for Financial Experts 8
sectors. The reforming body must be in action to ban few commissions and move towards
service models and mechanisms for customers and resolving the present scenarios and
tensions. The proposed reforms and legislative responses can solve the behavioral issues.
The legislative changes are required to be associated with organizational culture and
enhance the advisor awareness of ethical and professional obligations. The ability of
ethical reasoning of stakeholders can ensure due diligence and control.
Article 4
In this article, through the looking glass-Identifying the factors influencing ethical
decisions making in financial planning organizations, authored by Anona Armstrong suggests
financial planning is extremely relevant for the achievement of social and political objectives
(Armstrong and Francis, 2018). This also includes the retirement age and selection of
superannuation fund. There has been ever increasing need for obtaining the financial advice and
ensuring the sustainable lifestyle and healthy retirement years (Oh, Kim and Kim, 2006).
According to the recent statistics, there is increased relevance to financial advice to the
Australian economy. The objectives are the identification of present patterns of unethical
behaviors by financial advisors. The measurement of financial services offered by compliance
managers and ethical issues faced through the provision of cognitive frameworks utilized by the
financial planners. The present study examines present ethical climate and working culture
within a financial planning firm and how this will have the impact on ethical decision making.
The key objective is conducting the study on how the financial planners will fulfill the
obligations as an emerging profession within a commercial environment. The common
perception is ethics are hard for implementing and which are irrelevant to the real world and

Code of Ethics for Financial Experts 9
have difficulty in application. Financial planners deal with an extensive range of ethical
problems every day, especially with their role and the advice offered to clients. Certain decisions
must be made for resolving the problems in a given environment, especially when there are
multiple stakeholders. The values and interests of stakeholders are always in conflict. The
professional judgments made through financial experts warrant attention and requires
identification of factors which influence ethical reasoning. The financial planners must meet with
the ability of ethical and professional and ethical obligations.
In an organization, managers and officers have a significant role which will influence the ethical
context in which decisions are taken. The ethical decision of compliance mangers is responsible
for supervising the financial experts in the work. Ethical context within an organization has a
significant role to play and influence the financial planners conduct. This ensures decision
making consistency in different circumstances and plays a vital role in addressing the unethical
behavior. The string ethical background will assist the financial service organization and embed
the compliance culture and ensure the ability of meeting with obligations. These will provide the
most efficient services in an honest manner and offer quality advice to clients. The concept of
financial profession implies ethical complexity levels and decision making ambiguity. This
demands the string ethical background which must be articulated in code of conduct. The
financial planners must be demonstrating the ethical obligations imposed as a group and must
make effective choices while resolving the problems faced in daily practices. Legal obligations
and professional ethics exist in isolation. Ethical standards and legal obligations for the financial
planners enriched can be complementary implications that can arise in the research.

Code of Ethics for Financial Experts 10
Summary
The present report has raised a number of themes in expert ethics for the financial
planners, including issues that are associated with the financial products and has an impact on
investors. There is a large continuum of conflict of interest within a given framework and advice
free institutional bias. To decrease the legal, ethical and regulatory risks that are associated with
the external environment, financial planners must be able to identify the legal and ethical issues
for resolving the dilemma. The understanding of ethical decision making mechanics requires
financial planning enterprises to understand the ethical culture. This is within the framework of
advisory business and how this has an impact over the ethical decision making. The present
scenario determines the study, which is presently undertaken to study of ethical reasoning of
financial advisors and cognitive architecture used for the provision of financial planning. The
study observes the contextual factors like the perceptions held by the compliance managers and
financial planners of ethical culture and climate. This is done within the financial service
framework and has implications for future regulation of financial experts and reliance over the
compliance as well as governance mechanisms within the framework of financial service
enterprises. Following the rules of corporate governance is must.

Code of Ethics for Financial Experts 11
References
Armstrong, A. and Francis, R. (2018). Through the looking glass-Identifying the factors
influencing ethical decisions making in financial planning organizations. International
Corporate Governance Research.
Bajtelsmit, V. and Wang, T. (2018). Household financial planning strategies for managing
longevity risk. Financial Planning Review, 1(1-2), p.e1007.
Bearden, F. (2015). A Study of Recognizing Conflicts of Interest in Pending Financial Planning
Engagements. Journal of Financial Counseling and Planning, 26(2), pp.148-159.
Bearden, F. (n.d.). Conflicts Of Interest In Providing Financial Planning To Friends,
Acquaintances And Relatives.
Bogan, V., Geczy, C. and Grable, J. (2018). Welcome to the inaugural issue of Financial
Planning Review from the co-editors. Financial Planning Review, 1(1-2), p.e1009.
Cao, Y. and Liu, J. (2017). Financial Executive Orientation, Information Source, and Financial
Satisfaction of Young Adults. Journal of Financial Counseling and Planning, 28(1), pp.5-19.
Hellman, N. (2011). Chief Financial Officer Influence on Audit Planning. International Journal
of Auditing, 15(3), pp.247-274.
Joo, S. and Choe, H. (2017). : Financial Planning Revieww 1000 (Review of Personal Financial
Planning Research: 10 Years of Financial Planning Review). SSRN Electronic Journal.
Oh, K., Kim, T. and Kim, C. (2006). An early warning system for detection of financial crisis
using financial market volatility. Expert Systems, 23(2), pp.83-98.
Raffer, K. (2004). International Financial Institutions and Financial Accountability. Ethics &
International Affairs, 18(02), pp.61-77.

Code of Ethics for Financial Experts 12
Rick, S. (2018). Tightwads and spendthrifts: An interdisciplinary review. Financial Planning
Review, 1(1-2), p.e1010.
Rooney, D., Mandeville, T. and Kastelle, T. (2012). Abstract Knowledge and Reified Financial
Innovation: Building Wisdom and Ethics Into Financial Innovation Networks. Journal of
Business Ethics, 118(3), pp.447-459.
Smith, D. (2010). Ethics and Financial Advice: The Final Frontier.
Smith, J. (2009). Professionalism and Ethics in Financial Planning.
Staubus, G. (2005). Ethics Failures in Corporate Financial Reporting. Journal of Business Ethics,
57(1), pp.5-15.
Yeske, D. (2010). Finding the Planning in Financial Planning: An Integrative Framework for
Strategy-Making by Financial Planners. SSRN Electronic Journal.