Ethics and the Financial Sector

Question 1

What is ethical finance?

Answer 1

Investment decisions are underpinned with environmental, social and ethical factors.

Question 2

What are the 4 ethical standards expected by financial regulators?

Answer 2

1. Integrity
2. Customers’ Interest
3. Market Conduct
4. Client Assets

Question 3

What are the Chartered Financial Analyst 6 Principles?

Answer 3

1. Integrity, competence, diligence and respect
2. Profession above self interest
3. Independent professional judgement
4. Encourage others to act professionally and ethically
5. Uphold rules governing capital markets
6. Exercise CPD

Question 4

What are the CISI Principles sometimes known as?

Answer 4

Lord George Principles

Question 5

What are the 8 CISI Principles?

Answer 5

1. Honesty and fairness
2. Integrity
3. Observe the law, regulations and conduct standards
4. Market integrity
5. Manage conflicts of interest
6. CPD
7. Decline to act in a manner which you are not competent in.
8. Uphold high standards of professional and personal conduct.

Question 6

For a firm setting up an internal Code of Conduct, what are some ethical values that it can include?

Answer 6

• Integrity
• Responsibility
• Respect
• Compliance
• Confidentiality
• Trust

Question 7

For a firm setting up an internal Code of Conduct, what are some professional standards it can include?

Answer 7

• Service + Excellence
• Risk culture
• Transparency
• Adherence to laws, regulations.
• Sustainability
• Commitment to employees

Question 8

If you are asked to act in a manner contrary to the CISI Code of Conduct, what steps should you take?

Answer 8

1. Raise concerns with line manager.
2. Raise concerns with internal compliance department.
3. Approach NEDs or Audit Committee
4. Contact the CISI.