Introduction to Professional Ethics Flashcards
What are the 5 steps to making ethical decisions?
- Recognize
- Analyze
- Assess
- Decide
- Reflect
What are ethics?
A set of principles that guide the decisions people make and the actions they do or do not take.
How do morals differ from ethical standards?
Ethical standards are based on what is considered acceptable according to law, or to a particular region, culture, group, professional body, etc. Morals are individual standards of behaviour or beliefs based on what is right and wrong conduct.
What (2) obligations do you have as a professional acting ethically?
Compliance-based obligations
Integrity-based obligations
What are 3 common reasons why people struggle with ethical decisions?
- Complexity - “right” decision may not always be clear
- Urgency - ethical dilemmas may require quick decision making
- Limited viewpoint - not consider impacts from all angles
What must be relied on to guide behaviour where no rule or law exists for a situation?
Ethical principles
What is the FPSC Code of Ethics?
8 principles guiding the conduct of FPs.
What is the FPSC Rules of Conduct?
Rules that accompany the Code of Ethics and reflect the specific standards of conduct expected of FPs.
What is the FPSC Fitness Standards?
Expectations that FP Canada has for the character of FPs.
What are the FPSC Financial Planning Practice Standards?
Standardized steps to be followed in any financial planning engagement.
What are the 3 reasons why a Code of Ethics is important?
- Adhering to a common standard
- Demonstrating both compliance and integrity
- Earning the public’s trust and respect
What are the 8 Principles of the Code of Ethics?
- Duty of loyalty to the client
- Integrity
- Objectivity
- Competence
- Fairness
- Confidentiality
- Diligence
- Professionalism
Which conditions must be present for an ethical dilemma to exist?
- A decision must be made between 2 or more choices
- Both choices compromise at least one ethical principle
- None of the options is ideal
Is the regulatory system for the financial industry in Canada rules-based or principles-based?
Principles-based
How do regulators safeguard consumers?
Establishing and implementing standards, practices, and codes of ethics.
What are the two national self-regulatory organizations in the securities industry?
MFDA and IIROC. Work together along with CSA.
What is CSA?
Canadian Securities Adminstrators. Formal group consisting of securities commissions in each province and territory that work together, share ideas, and collaborate on the development of rules and regulations.
What are the two national SROs responsible for?
- Financial compliance
- Business conduct compliance
- Registration
- Enforcement
- Market surveillance
What is the Canadian Council of Insurance Regulators (CCIR)?
Like the CSA, CCIR is made up of insurance regulators from across the country. Its mandate is to promote an efficient and effective insurance regulatory system.
What is CISRO?
Canadian Insurance Services Regulatory Organizations. Inter-jurisdictional group of regulating authorities dedicated to developing consistent standards of qualifications and practice for insurance intermediaries. CISRO cannot enact legislation, but is a key advisor to government on regulatory issues.
What is the purpose of FP Canada and the FP Canada Standards Council?
FP Canada was created to foster better financial health for Canadians and lead the advancement of professional financial planning. FP Canada Standards Council is dedicated to establishing and enforcing financial planning standards, setting certification requirements, and developing and delivering exams.
