FINS5537: Financial Planning Advice & Ethics
FINS3637: Wealth Management Advice & Ethics
Lecture Six, Seven
Ethics Principles & Ethical
Decision Making
Lecturer: Nidal Danoun
n.danoun@unsw.edu.au
References and Readings
• Ethics and professional Practice in Financial Planning 1st Edition – Cull et all, LexisNexis
• Everyday Ethics for Financial Advisers - The Ethics Centre
• Financial Planning in Australia latest Edition- Taylor, LexisNexis
• Thomson Financial Planning Handbook
• Financial Planning 2nd edition – Mckeown et all,Wiley
• Corporations Act (Chapter 7)
Learning Outcomes
▪ Demonstrate knowledge of how ethics is applied in everyday life, and the
relationship between ethics, morality and the law
▪ Critically reflect on the different ethical philosophies of deontology, virtue
ethics, utilitarianism and consequentialism as they apply to the financial
advice profession, and
▪ Critically reflect on the ethical framework of purpose, values and principles
and its application in the role of financial adviser.
▪ Outline the key elements of ethical thinking and recognise the need to
adopt multiple perspectives
▪ Apply the ethical theories and frameworks for ethical thinking
3
What is the purpose of business?
▪ Businesses exist to serve the general
welfare. Profit is the means, not the
end. It is the reward a business
receives for serving the general
welfare.
When a business fails to serve the
general welfare, it forfeits
its right to exist.’
Adam Smith (cited in Koehler 2009)
Why Ethics?
It is our capacity for good that makes ethics possible;
while it is our propensity for evil that makes ethics necessary.
Noel Preston
Ethical Theory
What are ethical theories?
Ethical theories are formal ways of explaining what we ‘ought’
to do when faced with an ethical dilemma.
Ethical theories attempt to explain what we ought to do, with
each theory based on philosophical assumptions about what is
right or wrong.
Ethical theories can help us understand how we might make
decisions when faced with an ethical dilemma.
Introduction
Ethical Theory
Some of the key issues in ethical theories involve whether to
focus on:
Strictly following the rule;
The consequences of the decision; or
The nature of the actions.
Multiple ethical-decision frameworks can assist financial
planners make ethical decisions.
Introduction
Ethical Theory
What is ethics?
What is ethics?
What ethics isn’t
▪ Ethics and values
▪ Ethics and etiquette
▪ Ethics and standards
▪ Ethics and the law
9
faculty of science
11
Ethics and the law
• Law→ what we can do
• Ethics→ what we should do
• Legal but not ethical?
• Ethical but not legal?
10
faculty of science
Ethical Thinking implies an ability to:
• Think critically
• Recognise issues or practices that have moral content
• See beyond our own personal experience
• Address issues from all sides
• Consider the consequences of decisions,
whether intended or unintended
• Evaluate the best arguments from
each perspective
• Arrive at a conclusion based on a systematic analysis of these
arguments
• Defend viewpoints; analyse new information or perspectives
11
Ethical Theory
What is ethics?
‘Ethics’ may mean different things to different people and is
important to how one lives their life and makes decisions, both
personally and professionally.
The term ‘ethics’ originates from the Greek word ‘ethos’, which
means character, and is used to describe the guiding beliefs of
a particular community, nation, or custom.
Ethics is defined by the Oxford Dictionary as ‘the moral
principles that govern a person’s behaviour or how an activity
is conducted’.
What is ethics?
Ethical Theory
Ethical responsibilities usually involve activities that are
‘expected or prohibited by societal members even though they
are not codified into law’.
Defining ethical behaviour can be subjective, depending on
one’s own perspective of what constitutes right and wrong
behaviour and how they relate to ethical principles of moral
philosophy.
What is ethics?
Ethical Theory
Areas of the study of ethics include:
Meta-ethics: Focuses on what humans understand when we talk
about what is right or wrong. This area of study concerns itself
with the theory of ethics, such as the meaning of morality and
ethical principles.
Normative ethics: Concerned with the criteria for what is
accepted as right or wrong and how the moral course of action
is determined. It deals with the content of moral judgments.
Applied ethics: Relates to the actual actions that a person is
obliged to perform in a particular situation.
What is ethics?
Ethical Theory
Types of ethical theories
There are several ethical theories.
Five main types of ethical theories are:
Deontological;
Teleological;
Virtue;
Care ethics;
Social contract.
Principles-based ethics is not aligned to any one theory but drawn from the two
most referred to ethical theories: deontological and teleological theories.
Types of ethical theories
All frameworks have differing degrees of usefulness & limitations
Ethical Theory
Deontological theories
Deontological ethics – concerned with rules and a sense of
duty.
Sense of duty may be based on professional codes of
conduct; religion; or personal, cultural, or societal values.
Based on a general rule, known as the ‘categorical
imperative’, as proposed by Immanuel Kant (1724–1804).
Views an action as morally right if motivated by goodwill.
Focuses on respect of the individual.
Measures ‘good’ or ‘bad’ behaviour according to the action
taken.
Deontological ethical theories
Ethical Theory
Teleological theories
Teleological ethics is concerned with utilitarianism.
Introduced by Jeremy Bentham (1748–1832) and
developed by John Stuart Mill (1806–1873).
Based on the idea that if all individuals maximise their
utility, then this will lead to society’s utility being
maximised.
Utility is measured by happiness.
The measure of right or wrong is the greatest good to the
greatest number of people.
Based on the outcomes of the decision - also referred to
as consequentialism.
Teleological ethical theories
Ethical Theory
Key features of deontological and teleological theories
Deontological Teleological
Rules-based or duty-based according to the
‘categorical imperative’.
Consequence-based as measured by ‘happiness’.
Proposed by Immanuel Kant. Introduced by Jeremy Bentham and developed
by John Stuart Mill.
Also known as Kantian ethics and ethical
idealism.
Also known as consequentialism and
utilitarianism.
Goodness or badness determined by the
action.
Goodness or badness determined by the
outcome.
Behaviour considered ethical if it is
motivated by goodwill.
Behaviour is considered ethical if it produced the
greatest good for the greatest number.
Focuses on respect of the individual. Focuses on individuals maximising utility.
Common phrases:
•‘Do unto others as you would have them do
unto you’.
•‘The end does not justify the means’.
Common phrases:
•‘The greatest good for the greatest number of
people’.
•‘The needs of many outweigh the needs of few’.
•‘The end justifies the means’.
Ethical Theory
Principles-based ethics
Principles-based ethics incorporates aspects of both deontological
and teleological theories and to provide a more practical approach
to dealing with ethical dilemmas.
Principles-based ethics contains three central claims:
1. Basic principles and guiding rules are central.
2. A decision is morally justified if it is consistent with the relevant prima facie
principles and rules.
3. The success of the decision can be measured by the extent to which it
cohesively evaluates the strengths and weaknesses of all plausible moral
judgments, principles, and relevant background theories.
The Financial Adviser Standards and Ethics Authority (FASEA)
and the Financial Planning Association (FPA) have adopted a
principles-based framework as part of their code of ethics.
Principles-based ethics
Ethical Theory
The Belmont Report
Principles-based ethics was first suggested as a means of dealing
with ethical decisions in the area of bioethics in the 1970s, as
part of the Belmont Report.
The Belmont Report identifies three basic ethical principles,
being respect for persons, beneficence, and justice, which were
aimed at addressing ethical issues arising from the conduct of
research involving humans.
Principles-based ethics
Ethical Theory
Beauchamp & Childress principles-based
framework
Tom Beauchamp and James Childress describe four basic
principles under their principles-based framework:
1. Autonomy: Respect the views, choices and actions of others as
provided through informed consent.
2. Non-maleficence: Avoid causing harm and ensure benefits
outweigh risks.
3. Beneficence: An obligation to act in the best interests of
others and choose the action that produces the best outcome
out of a range of alternatives.
4. Justice: Treat people fairly by ensuring both costs and benefits
are distributed fairly.
Principles-based ethics
Ethical Theory
The Beauchamp & Childress framework can apply to a financial
planning context, as outlined below:
Autonomy: An obligation of the financial planner to respect a
client’s wish to make their own decisions where the client is fully
informed and provides consent for the advice to be undertaken.
Non-maleficence: Financial planners would abstain from
providing advice that would or could potentially cause harm.
Financial planners must be both competent and diligent in
providing advice in order to minimise any harm to their clients.
Principles-based ethics
Ethical Theory
Beneficence: Financial planner is to act in the best interests of
their clients and to provide advice that is based on the action
that produces the best outcome from a range of alternative
strategies.
Justice: Involves financial planners treating their clients fairly
and respectfully, regardless of their financial or personal
situation, with fees fair and reasonable for the work that is
undertaken.
Principles-based ethics
Ethical Theory
Virtue ethics
Virtue is concerned with one’s character, or the kind of person
you are.
To be classified a ‘virtue’, a character trait must represent an
ethical value, such as compassion, justice, fairness, or
benevolence.
Aristotle described the virtue of man as ‘the state of character
which makes a man good and which makes him do his own
work well’.
Virtue ethics theories
Ethical Theory
Virtue ethics theories are based on the individual using their
moral judgment to explain and justify their decisions, and
reflecting on their decisions as a means of further advancing
their ethical development.
Virtue is built up over time/aspiration to be a virtuous person.
Virtue involves reflection, which requires experience, so role
models are often used to ‘teach’ virtue ethics.
Aristotle believed that observing ‘good’ people was a way that
people could learn virtue ethics, e.g. shadowing in a
professional year program.
Virtue ethics theories
Ethical Theory
Applying virtue ethics to financial planning:
Virtue ethics can easily apply to professions where character
and practical reasoning are crucial.
Rules, values, and virtues are interconnected.
Financial planners must weigh up the risks and benefits of
alternative strategies while acting with independence, integrity,
professional competence, due care, confidentiality, diligence,
and honesty to provide advice which is in the best interests of
their client.
Virtue ethics theories
Ethical Theory
Virtues ensure the rules are followed in the way they were
intended - they follow the ‘spirit’ of the law, rather than the
letter of the law.
A virtues-based normative theory of ethics in financial planning
requires a list of virtues to define the ‘good’ financial planning
professional.
Virtue ethics theories
Ethical Theory
Care ethics:
Based on the work of Carol Gilligan, but somewhat
controversial, as Gilligan considered that women and men
treat ethical issues differently - women focusing on emotional
and caring aspects, and men on rules and procedures.
Care ethics is a normative theory of ethics which focuses on
relationships; specifically, those which involve a level of care.
Derives ethical responsibilities from personal relationships,
demanding ongoing actions and attitudes of care.
Care ethics
Ethical Theory
Considers the relationship above all else, with the decision
being sympathy-based, rather than principles-based.
The notion of empathy has also made its way into the ethics of
care.
Some similarities between virtue ethics and the ethics of care,
but the ethics of care is a distinct moral theory, with caring
relations having primary value.
Care ethics
Ethical Theory
Applying care ethics to financial planning:
In a financial planning context, using a care ethics approach means
that an ethical decision focuses on the relationships that may be
implicated by the decision.
The care ethics approach places humanity above all else.
Undertaking a conscious process of understanding others’ situations,
as proposed by a care ethics approach, may assist in resolving ethical
issues for mutual gain.
Care ethics involves moral sensitivity that challenges the status quo
and considers issues in the broader social context.
Care ethics
Ethical Theory
Social contract theory:
Social contract theory suggests that society can live together
in harmony, based on a social contract that establishes rules
for behaviour that society chooses to follow.
Holds that both moral and political obligations are dependent
on this social contract.
Originates from the ancient philosophical teachings of
Socrates, who believed in justice.
Social contract ethical theories
Ethical Theory
A modern version proposed by Thomas Hobbes argues all
humans are motivated to satisfy their own self-interests,
whether in a society or not.
Hobbes also believed humans were rational beings and would
collectively create common laws that they knew they and
others would all follow.
Belief that morality is subjective.
Social contract ethical theories
Ethical Theory
John Rawls’ Theory of Justice:
Proposes that, although humans are motivated by self-interest,
they also have the moral capacity to make impartial judgments
through the ‘veil of ignorance’.
Based on the argument that because humans make decisions
based on self-interest, they would not endorse a principle that
was unfair, in case once the veil of ignorance was lifted, they
found themselves being subjected to the losing end of that same
principle.
Social contract ethical theories
Ethical Theory
Applying social contract theory to financial planning:
Social contract theory is relevant to a group of professionals, such as
financial planners, who hold shared values and goals, whether that be
as members of a professional association, members of a firm, or
members of the profession more broadly.
The social contract itself could be:
Among members of a professional financial planning association;
Among all financial planning professionals listed on the financial adviser
register;
Between society and financial planners;
Between government and financial planners;
Between financial planners and their licensees; or
Between clients and financial planners.
Social contract ethical theories
faculty of science
Ethical framework and theory
Virtue Ethics
Oldest ethical theory from
ancient Greece …(Aristotle)
Ethical virtues of character,
Virtuous Character
What person do I want to be
Deontology
Deon or duty …(Kant)
• Fulfilling duties, meeting
obligations, obeying a set
of rules
Consequentialism
Outcome dependent
Utilitarianism
- maximising pleasure,
happiness, justice
- minimize/absence of pain
Values – what? Principles – how?
Framework
Purpose – why?
Theory
Need to consider the strengths & weaknesses of each of the theories when dealing with ethical
dilemmas
35
Ethical Theory
Ethical decision frameworks
Some ethical dilemmas are complex and not readily resolved,
even when guided by a professional code of ethics.
It can be useful to have a framework to assist with analysing
and making ethical decisions.
Three different ethical decision frameworks include:
Langenderfer and Rockness model;
PLUS model;
Three-question model.
Ethical decision frameworks
Ethical Theory
Landgenderfer & Rockness model
Initially developed to provide educators with a model with
which to teach business ethics.
Extended to many different professions to deal with ethical
dilemmas.
Uses seven main questions to consider various ethical issues
and decide which course of action to take (or not to take).
Langenderfer & Rockness model
Ethical Theory
1. What are the facts of the case?
2. What are the ethical issues in the case and the
stakeholders involved?
3. What are the norms, principles, and values related to the
case?
4. What are the alternative courses of action?
5. What is the best course of action that is consistent with
the norms, principles, and values identified in 3?
6. What are the consequences of each possible course of
action?
7. What is the decision?
Langenderfer & Rockness model
Ethical Theory
PLUS Model
The PLUS ethical decision-making model was originally
developed through the United States’ Ethics Resource Center
as part of the Ethics & Compliance Initiative (ECI).
Based on ethical theories and contemporary understandings
of both decision-making processes and ethics.
Developed to be simple and easily integrated into one’s
thought processes.
Can be used in conjunction with the Langenderfer & Rockness
model.
More descriptive than prescriptive, and a focus on values.
PLUS Model
Ethical Theory
The letters in PLUS each stand for a type of lens, or filter, that
decision-makers can apply to an ethical dilemma.
P = Policies: Is the action/decision consistent with the licensee’s
policies, procedures, and guidelines and any professional code of
conduct?
L = Legal: Is the action/decision acceptable under the applicable laws
and regulations, such as the Corporations Act and the Financial
Planners and Advisers Code of Ethics?
U = Universal: Does the action/decision conform to the universal
principles and/or values adopted by the licensee and the profession
more broadly? Does it align with the core values of the organisation
and the profession?
S = Self: How does the action/decision sit with one’s own personal
values and what is considered the right thing to do?
PLUS Model
Ethical Theory
Three-question model
Initially known as the ‘ethics check’, as developed by Kenneth
Blanchard and Norman Peale.
Consists of three questions one must ask when evaluating an
action or decision.
Each question is sequential, so may mean subsequent
questions do not need to be asked.
Three-question model
Ethical Theory
The three questions posed in the model are:
1. Is the action illegal? If it is legal, then go to the next
question.
2. Does the action violate organisational or professional
standards? If the action does not violate these standards, go
on to the next question.
3. Who is affected, and how, by the action? If an action is legal
and complies with both organisational and professional
standards, then your personal principles of right and wrong
will need to be considered in order to determine if the
action is ethical.
Three-question model
Preston2007
6. Justify Decision
2. Principles, Values &
Assumptions?
1. Assessing the Situation
4. Character Factors
5. ComprehensiveAssessment
3. Process, Outcomes &
Consequences
Ethical Decision Making
2. Principles, Values &Assumptions?
• respect for life, essential humanity of people
•justice, fairness
•truthfulness, honesty in relationships
•integrity
•meeting care needs
•Duties to stakeholders?
1. Assessing
the
Situation
•Facts
•People (stakeholders)
•Alternative perspectives
3. Process, Outcomes & Consequences
What possible options are there?
What are the consequences of these actions?
What if the decision was universalised?
How is the social good served?
How is an implicit social contract best served?
Ethical
Decision-
Making Part I
33
14
Ethical Decision Making – Part 1
6. Justify Decision
Can I give an account of the decision?
Is the decision not only desirable but
feasible?
4. Character Factors
How does the decision relate to the
kind of person or organisation I/ we
want to be? 5. ComprehensiveAssessment
Any factors warranting greater priority?
Why?
What is the fitting position?
Why?
Ethical Decision-
Making Part II
Ethical Decision Making – Part 1
Ethical Decision Making Framework (EDMF) - CFA
.
Ethical Theory
Summary
Ethics in financial planning is part of a complex system involving
regulation, professional bodies, financial advice organisations,
compliance officers, individual financial planners, and clients.
For financial planners to consistently demonstrate ethical behaviour,
all parts of the system need to complement one another.
Financial planners must be capable of making ethical decisions if
they wish to satisfy their altruistic desires, but also in order to protect
themselves, and their businesses, from legal liability.
Summary
FINS5537: Financial Planning Advice & Ethics
FINS3637: Wealth Management Advice & Ethics
Lecture Six, Seven
Ethics Principles & Ethical
Decision Making
Lecturer: Nidal Danoun
n.danoun@unsw.edu.au
Ethical Theory
Key learning outcomes:
1. Be able to explain the ethical and phycological developments
2. Be able to explain how process and structures can assist
ethical decision making and professional practice.
3. Learn to review complaint and professional disciplinary
process outcome, to draw on the experience of others.
4. Be able to apply professional judgment and risk
management principles to identify the detail and processes
required in giving good advice.
Key learning outcomes
Ethical Theory
What is ethical development?
Ethical development is also referred to as moral development.
Focuses on how morality is cultivated over one’s lifetime.
Concerned with the reasons why people make decisions,
rather than the actual decision itself.
Has to do with how humans cooperate and interact with one
another and organise their activities.
Involves considering the interests of other people.
Clients of financial advisers place a high value on adviser
morality.
What is ethical development?
Ethical Theory
Four component model
The ‘four-component model’, has four psychological
components postulated to be pre-requisites of moral
behaviour:
What is ethical development?
Ethical Theory
Developmental psychology
Studies in developmental psychology conducted by Lawrence
Kohlberg have shown that how a person responds to an
ethical dilemma is linked to their moral development.
Moral development has three main developmental levels: pre-
conventional, conventional, and principled.
Each level is made up of two stages, making a total of six
stages of moral development, which are sequential.
These reflect the six stages of decision-making when faced
with a moral dilemma.
To be capable of making an ethical decision, the moral
development of an individual must reach Stage 3.
What is ethical development?
Ethical Theory
Six stages of Kohlberg’s moral judgment development
Stage 1 The morality of obedience (pre-conventional).
Stage 2 The morality of instrumental egoism and simple exchange (pre-
conventional).
Stage 3 The morality of interpersonal concordance (conventional).
Stage 4 The morality of law and duty to the social order (conventional).
Stage 5 The morality of consensus-building procedures (Post-conventional).
Stage 6 The morality of non-arbitrary social cooperation (Post-
conventional).
faculty of science
Kohlberg’s levels of moral development
Level 3: Post-
conventional
• Follows internalised
universal principles of
justice and rights.
Balances concern for
self with concern for
others and the
common good.
• Acts in an
independent and
ethical manner
regardless of the
expectations of others.
Level 2:
Conventional
• Lives up to the
expectations of
others.
• Fulfils duties and
obligations of the
social system.
• Upholds laws.
Level 1: Pre-
conventional
• Follows rules to
avoid punishment
or receive
rewards.
• Acts in own
interest.
• Blind obedience to
authority for its
own sake.
Ethical Theory
Factors influencing ethical development:
Years of work experience.
Social settings and culture of an organisation.
Organisational culture.
Age.
Formal education.
Ethics specific education.
Membership of professional body.
Position in firm’s hierarchy.
Environment and experiences.
Factors influencing ethical development
Ethical Theory
Can ethics be taught?
There has been much debate surrounding whether ethics can
really be taught.
While it is almost impossible to teach moral behaviours,
education should facilitate the exploration of the existing
moral and value frameworks of students.
While most principles of right and wrong are well established
prior to high school, education can assist one achieve moral
and ethical awareness.
The way in which ethics is taught can also influence the
effectiveness of ethics education.
Can ethics be taught?
Ethical Theory
Ways of teaching ethics
Incorporate ethics into the curriculum.
Models to assist in making ethical decisions.
Piggy-backing.
Digging deep.
Mainstreaming - integrating financial planning into the main
(common core) requirements of a course.
Focusing.
Stand-alone unit.
Different methods of teaching ethics
Ethical Theory
Ethics education
Balance of both theory and practice is required.
Theory is important to help students understand their own
value systems and to provide a framework and environment
to assist in identifying, analysing, and resolving ethical
issues.
However, on its own, a theoretical perspective restricts
discussion of ethical issues to a philosophical level, rather
than a practical and professional level.
A case-study approach can be helpful, as students have the
opportunity to practise exercising their judgment and
achieve a deeper level of learning than what would
otherwise be the case.
Ethics education
Ethical Theory
Introduction, record keeping and systems
Good process supports good practice as a professional
financial planner.
Process is not a substitute for the professional’s own ethics,
but can assist by:
Reducing human error.
Drawing from the experience of other professionals.
Introduction, record keeping and systems
Ethical Theory
“In circumstances where the risk required exceeds the client’s
risk profile, the adviser will need to counsel the client to take
one, more or all of the following steps:
invest more funds
take more risk than indicated by the client’s profile
modify future goals.
Where the risk required is less than the client’s risk profile, the
adviser should inform the client they can achieve their goals
by taking on less risk. Armed with this information, the client
can make an informed investment decision.”
(AFCA Determination 510284 (2019))
Goals, needs & objectives
Ethical Theory
Risk profiling
Risk profiling is the process of understanding a client’s
personal understanding of, and tolerance for, risk in their
personal finances.
An investment may be a perfectly good investment, but
unsuitable for the risk profile or circumstances of a particular
client.
Risk profiling is a frequent area of dispute, providing many
decisions to review for best practice.
Risk profiling
Ethical Theory
Preparing and presenting advice
It is often not possible to measure the success of advice at the
time that it is presented – it is often probabilistic in nature,
rather than predictive.
How that uncertainty is presented is important to client
understanding of risks, opportunities and trade-offs.
Inappropriate uses of projections can make advice misleading
(FOS Determination 474402 (2018), AFCA Determination
606883 (2020)).
Preparing and presenting advice
Ethical Theory
Clear and honest communications in advice
Requirements to be clear and honest in communications exist
as a professional obligation in multiple sources:
Code of Ethics Standard 9.
FPA Code of Professional Practice Principle 3, General Conduct.
Association of Financial Advisers Code of Conduct Principle 1,
Integrity and Professional Conduct.
Corporations Act 2001 (Cth) s 912A(1)(a).
Clear and honest communications in advice
Ethical Theory
CRC Determination 2019/1 is a good example of the extent to
which this is expected in professional practice:
The client indicated they were going to undertake an action
which contravened a superannuation rule (a declaration about
retirement that did not meet the requirements of the rules).
The financial planner did not advise the client to undertake this
action but did not advise the client not to undertake the action.
The recommendations that were made were on the basis that
the action had been undertaken.
Clear and honest communication in advice
Ethical Theory
“50. Code of Ethics Principle 2 requires the provision of services to be
undertaken with integrity. Integrity, require[s] ‘honesty and candour’ in any
dealings which a planner is involved. ‘Honesty’ and ‘candour’ are to be
read disjunctively. Candour extends to cover such concepts as being open,
straightforward, upright and transparent. This concept applies to all matters
in which a financial planner may be engaged. It extends to the financial
planner providing straightforward
and upfront advice to a client who on the face of it may have breached, or
may be proposing to breach, a regulatory requirement. There is no
evidence which implicates the Member in advising Client A1 to engage in
[dishonesty] to the Cbus trustee in making his superannuation fund
withdrawal any more than there is any evidence that the trustee acted
improperly in deciding to release the funds. The Panel is however satisfied
that the Member lacked candour in failing to advise and document that the
proposed strategy did not accord with the regulatory requirement. As Code
of Ethics Principle 2 states the planner is in a position of trust and the
source of that trust is the planner’s personal integrity and the basis of that
integrity requires the planner to provide candid advice to a client.”
Clear and honest communication in advice
Ethical Theory
Summary
Ethical development in financial planning is a result of a
combination of factors, which include education,
experience, and organisational culture.
This chapter has provided a background to the components of
ethical development and the six stages of moral judgment
development.
A higher level of education also resulted in higher levels of
moral development among financial advisers.
Summary