Ethics in Financial Advisement

Running head: ETHICS IN FINANCIAL ADVISEMENT

Ethics in Financial Advisement

Ethics in Financial Advisement

Ethics in today’s business world has received a tremendous amount of publicity over the last decade. Organizations face ethical decisions on a daily basis that affect the lives of thousands, sometimes millions of people. Having the best product on the market does not hold the stature that it once did. Consumers are bombarded with headlines that speak of companies making unethical decisions and organizations are often times forced to make a decision unpopular with stakeholders, but maintain a firm commitment to ethics and integrity. One profession that must adhere to strict ethical standards is that of financial advisement.

With the increase in self managed retirement programs such as 401(k) and IRAs, consumers are looking for any distinct advantage that can be found in ensuring the long term success of their retirement accounts. A number of these people look to financial advisors to receive advice and direction in order to reach their monetary goals in an appropriate time frame. It is very common for people to conduct numerous interviews to find a financial adviser that suits their needs. Trust is often thought to be the most critical factor in choosing a financial advisor. Making ethical decisions plays a crucial role in establishing that trust.

An article found on www.bnet.com discusses the Certified Planner Board of Standards (CFP). This certification is typically attained by financial advisors who work with the general public to help make critical financial decisions. The mission of Certified Financial Planner Board of Standards is to help people make competent, professional and ethical financial planning (Standards, 2007). The article goes into great detail about the increase in ethical standards that the CFP implemented to their group of 55,000 members. The updated standards included ensuring that the