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Chapter 16 - ETHICAL BEHAVIOR - Coggle Diagram
Chapter 16 - ETHICAL BEHAVIOR
Principle of Integrity: Integrity means the state of being whole, entire, or undiminished. integrity is doing what a person says he will do. The benefits of integrity are to enforce purposes, encourage respect for moral values, strengthen standards, defeat ill-advised compromises and to live up to a person’s promises and commitments to others.
PRINCIPLE OF OBJECTIVITY : objectivity is the concept of truth independent from individual subjectivity.
Obstacles
Cognitive bias
conflict of interest
PRINCIPLE OF COMPETENCE : The principle of competence demands that financial adviser representatives only give advice or sell products within their sphere of competence and expertise.
PRINCIPLE OF FAIRNESS
Equality: Equality requires professionals to treat “like things in like ways”.
The Golden Rule
Giving A Person What Is Due To Him
PRINCIPLE OF CONFIDENTIALITY : PDPA
Fine: Individual up to $5000 and/or imprisonment of up to two years, or both. Companies in breach of the provisions, upon conviction, are liable to a fine of S$1 million, or 10% of their gross annual turnover in Singapore, whichever is greater.
Apart from the above penalties, a breach of the PDPA provisions will result in reputational damage
A breach of client information would also attract civil or criminal sanctions under the relevant law including banking secrecy laws and the PDPA to keep client information private and confidential.
PRINCIPLE OF PROFESSIONALISM
Requirements
treat all persons with respect and consideration. This means not treating people as “mere means” to an end.
to act and behave in a way that brings trust and dignity to the profession. At all times, financial adviser representatives must act and conduct themselves with utmost propriety and probity.
PRINCIPLE OF DILIGENCE
The first is that diligence requires providing services in a reasonably prompt and thorough manner
A second requirement of the principle of diligence is that professionals provide services with “due care”. Due care refers to the effort made by a professional to take all the circumstances into account and exercise the level of judgment and care that would reasonably be expected under the circumstances.
The third and final requirement of the principle of diligence obliges professionals to ensure that their support staff members conduct themselves in a professional manner.
Benefit