FNCE 322 Assignment: Ethical Conduct of Jillian Whitmore Report

This report evaluates Jillian Whitmore's adherence to the Financial Planning Standards Council (FPSC) Code of Ethics, focusing on the principles of Client First, Integrity, Competence, Fairness, Confidentiality, Diligence, and Professionalism. The analysis highlights instances where Jillian properly followed the code when advising Beth and John Hubbard, such as prioritizing their low-risk tolerance and maintaining client confidentiality. However, the report also identifies violations of the code during Jillian's meeting with Kathy and Rick Allen, including failing to prioritize client interests, lacking integrity, demonstrating incompetence, and neglecting diligence, primarily due to her disinterest and focus on personal gain. The report concludes with specific suggestions for corrective actions to ensure Jillian complies with ethical standards in future client interactions, emphasizing the importance of client-focused service and professional conduct.

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Personal Finance
Jillian Whitmore, Financial Planner

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Table of Contents
Introduction...............................................................................................................................2
Beth and John Hubbard.............................................................................................................2
Kathy and Rick Allen...................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
In today’s competitive business world, the importance of compliance with ethical
principles has grown. There is a direct link between ethics and professional behavior since
professionals are expected to comply with moral principles while they discharge their
duties. Compliance with ethical principles ensures that the professionals prioritized the
interest of their clients above anything else (de Graaf, 2018). In this report, the case of
‘Jillian Whitmore, Financial Planner’ will be evaluated to evaluate whether Jillian followed
the Financial Planning Standards Council (FPSC) Code of Ethics. There are eight ethical
principles which financial professionals have to comply with as per FPSC to ensure that they
display ethical behavior in the organization (FPSC, 2017). In this report, the instances where
Jillian adhered to or ignored/violated the principles will be identified. For each instance
where Jillian failed to comply with a particular provision, suggestions will be made to ensure
that she engage in an ethical manner.
Beth and John Hubbard
In the case of Beth and John Hubbard, Jillian complied with some of the principles issued
by the FPSC; however, she has failed to comply with a few as well.
 Principle 1: Client First
Jillian prioritized the interest of Hubbard’s above her personal interest since she did not
force them to invest their money in the mutual funds. She knew that they have a low-risk
tolerance based on which she avoided putting her interest above their benefits.
 Principle 2: Integrity
Jillian maintained integrity while dealing with Hubbard’s since she gave them honest
advice as per their situation. She rigorously adhered to the moral rules while giving advice to
them by observing their requirements to ensure that her advice meets their requirements.
 Principle 4: Competence
Jillian adhered to the principle of competence since she ensured that she has enough
skills and knowledge while giving advice to her clients (FPSB, 2011). For example, when Beth

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asked Jillian about why they are not making money as the last year, Jillian told them it is due
to trending of interest and inflation rates due to which interest-earning investments were
not paying a higher rate of return.
 Principle 5: Fairness
Jillian was fair and opens about the professional relationship between her and her
clients while dealing with the Hubbard’s. Even though Jillian know Hubbard’s since she was
in elementary school; however, she acted in a professional manner while given advice to
them. For example, she quickly sent the details about mutual funds to John since he told her
that she did not understand how they work.
 Principle 6: Confidentiality
This is a major principle which provides that a CFP professional should maintain
confidentiality about the information of a client (FPSC, 2017). When Hubbard’s asked Jillian
about their daughter, Denise’s, financial affairs, Jillian politely stated that she could not
disclose that information as she is her client as well. It shows that Jillian had maintained the
confidentiality of her clients even when it was Denise’s parents who were asking about her
financial affairs. Thus, Jillian has adhered to the principle of confidentiality as imposed on a
CFP professional.
 Principle 7: Diligence
It is important that a CFP professional maintain diligence while providing advice to
their clients by ensuring that they maintain a standard of care to protect their interest
(Financial Planning for Canadians, n.d.). Jillian complied with this principle because she gave
required time to Hubbard’s even when their meeting was longer than she was expecting. It
shows that Jillian was patiently listening to the concerns of Hubbard’s and providing them
appropriate advice to act in their best interest.
 Principle 8: Professionalism
It is expected from a CFP professional that he/she must act in a professional manner
while discharging their duties to ensure that it positively reflect on his/her clients (FPSC,
2017). Jillian acted in a professional manner towards Hubbard’s since she complied with

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most of the principles given by the FPSC. She prioritized their interest above her personal
benefits and ensured that all there queries are resolved. She maintained the confidentiality
of the data of its clients by not leaking their data to others. She was polite and focused on
her client’s requirements to ensure that they understand different aspects of their financial
affairs. It shows that Jillian has acted in a professional manner.
Kathy and Rick Allen
Although the meeting with Hubbard’s took longer; however, Jillian quickly went to
her next meeting which was with Kathy and Rick Allen. In this meeting, Jillian violated
certain principles issued by FPSC.
Principle 1: Client First
Jillian breached the first principle of FPSC by failing to prioritize the interest of the
clients above her personal benefits. She was not interested in the meeting at all because she
found their bickering distasteful. This is not a correct approach since it makes it difficult for
Jillian to understand what the clients were saying and what issues are they facing. Jillian also
put the $20,000 into the mutual fund to generate extra bonus even when it was clearly
specified by Kathy that she should put it in RRSP. It shows that Jillian has breached her
duties. Jillion should have listened to what her clients were saying to understand what are
their issues. She should have given her complete attention to them rather than hoping to
quickly end the meeting (List, 2015). She also should have put the money in RRSP as
specified by Kathy by maintaining honesty.
Principle 2: Integrity
Jillian failed to maintain integrity since she did not rigorously adhere to the moral
rules and duties imposed by honesty and justice. She did not remember the details from
their previous meeting, and she put their money into the fund for personal benefits. She
breached the principle of honesty and justice while dealing with her clients based on which
she breached this principle. It is recommended that she should be honest with them and
provide them that she has forgotten a few details and she will remember them in the next
meeting (FPSB, 2011). She should also act honestly by maintaining the integrity and acted as
per the instructions of her clients.

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 Principle 4: Competence
It is important a CFP professional must maintain competency while dealing with clients
so that they can help them in the best way possible (O’Hara, 2018). Jillian can to the
meeting unprepared because she only remembered parts of the discussions made in the
previous meeting. It shows that Jillian has failed to comply with her duties as a professional.
Jillian can comply with this principle by improving her skills and knowledge while she deals
with the clients. She should go through the previous meetings files before meeting with the
clients to ensure that she is prepared for the current agenda.
 Principle 7: Diligence
A professional is expected to maintain a degree of care and diligence while handling
their clients’ affair to ensure that they fulfill their commitment in a timely and thorough
manner (IJ, 2018). Jillian breached this principle because she failed to maintain a degree of
care and diligence because she was frustrated by her clients and she just wanted to get out
of the meeting. It shows that she was not interested in maintaining care to protect the
interest of this clients. In order to address this issue, Jillian should take an interest in its
clients to learn about their problems to ensure that she maintains care and diligence while
giving them advice. She should ensure that she understands the requirements of her clients
to give theme relevant advice.
Principle 8: Professionalism
Professionals are expected to act in a positive manner which reflects upon the
profession (FPSC, 2017). Jillian did not acted professionally because she was not prepared
for the meeting since she only remembered a few things about the previous meeting. She
was also frustrated with her clients, and she was not giving much attention to their issues.
She also breached their trust by investing $20,000 in the funds rather than RRSP. In order to
act in a professional manner, Jillian should prepare herself before meeting with her clients
to learn about all the relevant details. She should carefully listen and understand the issues
of her clients which will assist her in serving them better. She should not breach their trust
by investing their money in the wrong place to earn extra bonus.

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Conclusion
In conclusion, various principles are imposed on Jillion by FPSC to ensure that she
comply with the Code of Ethics. Although Jillian complied with some principles; however,
she breached a few of them as well. She failed to prioritize her clients’ interest, and she
acted in a negligent manner. She also acted unprofessionally by investing the money of the
clients in the funds to earn extra bonus. Various suggestions are given in the report which
can assist Jillian in complying with these principles to ensure that she discharge her duties in
an ethical manner.

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References
de Graaf, F. J. (2018). Ethics and Behavioural Theory: How Do Professionals Assess Their
Mental Models?. Journal of Business Ethics, 1-15.
Financial Planning for Canadians. (n.d.). 8 Key traits of an ethical financial planner. Retrieved
from https://www.financialplanningforcanadians.ca/financial-planning/8-key-traits-
of-an-ethical-financial-planner
FPSB. (2011). Financial Planner Code of Ethics and Professional Responsibility. Retrieved
from
https://www.fpsb.org/wp-content/uploads/2016/01/110000_pub_CodeEthicsProfRe
sp-A4-LR.pdf
FPSC. (2017). Standards of Professional Responsibility. Retrieved from
http://www.fpsc.ca/docs/default-source/FPSC/standards_of_professional_responsib
ility.pdf
IJ. (2018). FPSC proposes to introduce Duty of Loyalty in Code of Ethics. Retrieved from
https://insurance-journal.ca/article/fpsc-proposes-to-introduce-duty-of-loyalty-in-
code-of-ethics/
List, C. (2015). Financial Planning Standards Council – Submission. Retrieved from
https://www.fin.gov.on.ca/en/consultations/fpfa/rfp-submissions/financial-
planning-standards.html
O’Hara, C. (2018). Strengthened standards proposed for certified financial planners.
Retrieved from https://www.theglobeandmail.com/investing/globe-advisor/article-
fpsc-proposes-strengthened-standards-for-certified-financial-planners/