Online course on Ethics for the Financial Services Professional

45-minute online assessment comprising 30 Multiple Choice Questions

Why Ethics Matter

1. Explain what Ethics is and how it differs from compliance.
2. Define why Ethics is important in Financial Services.
3. Explain why we need to learn about Ethics.
4. List the challenges associated with Moral Relativism and Moral Objectivism and explain the differences between both approaches.
5. Explain the theory of Psychological Egoism and the arguments used to defend and reject the theory.

Explain the difference between the System 1 and System 2 modes of information processing and explain why each is important in making good decisions.

An Ethical Decision-Making Framework

1. List and explain the 8-Step Model of Ethical Decision Making
2. List and explain the threats to our abilities to make a good decision.
3. Consider the role of ethical culture and other situational factors that can affect our decisions.
4. Explain how every decision impact the stakeholders.
5. Prioritise the Stakeholders appropriately.
6. Define the importance of having the right intention to the successful completion of an ethical action.
7. Anticipate consequences of your actions.
8. Consider the Symbolic Potential of your actions.
9. Explain whether you are willing to stand behind your decision using the “Publicity test”.

Obstacles to Ethical Decision Making

1. List the four obstacles to ethical decision making.
2. Explain the problem of "Corrupted Character”.
3. List and explain Four Characteristics of the Vicious Character.
4. Explain how lack of moral perception is developed.
5. Explain Moral Perception and Morally Salient facts and the process of developing moral perception.
6. List the three ways in which moral perception can be distorted.
7. Explain the obstacle of giving in to temptation.

Building & Maintaining an Ethical Culture

1. List the elements that compose the culture of the organisation.
2. Explain why culture is important.
3. List and define the formal organisational culture.
4. Explain the informal cultural system and how it differs from the formal cultural system.
5. List and Explain Signs of an Unethical Culture.

Professionalism

1. Explain what it means to be a professional in the financial service industry.
2. List and define characteristics of a Professional.
3. List and define requirements for a Professional.
4. List and explain the Professional Code of Ethics.
5. List the ten common questions clients ask to judge professionals.
6. Define the Role of Regulation in Financial Services.

Fair Dealing in Financial Products Marketing

1. Explain why “Good Ethics” is a good business.
2. List and explain the Six-Step Ethical Planning Model.
3. Explain how to develop strategies, how to determine suitability, and the importance of selling suitable products.

Ethical Sales and Full Disclosure

1. List and explain the six necessary steps in an Ethically sound Sales Process
2. List and explain Misrepresentation.
3. List and explain Uses of Illustrations.
4. List and explain the best practice involving disclosure.

Current Ethical Issues

1. List and explain the three factors that led to the current structure and environment of the industry.
2. Explain Conflicts of Interest.
3. Explain Replacement.
4. Explain Rebating.
5. List the different types of compensation systems and identify the ethical challenges posed by various compensation models within the financial services industry.
6. List the pros and cons of each fee-based compensation model.
7. List the disadvantages of the commission-based system and the reasons supporting it.
8. Explain the importance of compensation disclosure.
9. List and explain the ethical challenges that emerge in working with elderly clients.
10. Explain the Central of Ethical Dilemma.
11. Explain paternalism and identify the potential dangers associated with it.

45 Minutes

(To be done online)