As with any profession, financial service providers need to adhere to a certain set of rules and procedures in order for them to say that they are ethically performing their specific practices well. It is only through following these ethical practices would they be considered trustworthy, and it is a rule, whether spoken or unspoken, that financial service providers must stand by at all times.
In several facets of financial services such as bookkeeping, there must be a definite and concrete confidentiality agreement in place. As bookkeepers, especially those belonging to third party organizations or companies, handle multiple clients at once, it is all too probable for them to have clients that are competing within the same industry. BookkeeperSalaryData is a great resource for the career. The temptation to share information from one business to another can be strong, especially when monetary rewards are dangled in front of you. Thus, standards dictate that, like doctors and lawyers, confidentiality is the legal and moral ideal in this type of industry.
For investments and stock brokers, insider trading is strongly frowned upon. Insider trading uses non-public information in order to gain profits through buying or selling stocks based on information that is not accessible to the public. Find complete career information at www.investmentbankingsalary.org. As “leaks” in information become available, stock owners can pretty much tell their investors about the news so that they may trade investments accordingly. This, according to set standards, is something that brokers must not do or tolerate, as this would not only break ethical codes, but might also lead to financial ruin for the company concerned. Ethical standards courses are a big part of stock broker education requirements. While insider trading is allowed to some extent in certain areas, this is often a warning sign that they could not be trusted with confidential information as they will have the tendency, and the risk, to use it to their advantage, regardless of whether you gain or lose in the process.
For those involved with selling insurance policies or for those involved in financial advising or retirement planning, full transparency is often the standard, especially for those who have limited authority in transacting business in a client’s behalf. Here is a great career & salary guide for financial advisors. Clients must be made aware of all the details included within the contract or policy, and all actions must have the consent or approval of the client, written or otherwise. This is especially important as the average person’s typical retirement investments aren’t large enough to support a comfortable retirement.
These are often the rules that financial service providers must adhere to. While some laws and security measures can restrict or even eliminate transgression of these policies, there are often loopholes that shady individuals can go through. However, more ethical and professional individuals tend to not abuse these exceptions even if it presents itself. Being caught performing such acts may not only be illegal, but would seriously ruin the reputation of an individual or the company that the individual represents.
There are many reasons by which professionals can break these set rules of ethics, the most common of which is greed. Everyone can be tempted with money and financial gains, but true professionals will not be tempted by these, but would much rather do things in the more ethical manner. While there are really no set rules as to how investment companies, insurance companies (read more: life insurance agent job description), or stock brokerages should operate except those mandated by law, it is good to know that most companies do have unwritten rules about these types of practices, and would strictly reprimand or even terminate people who are caught doing such acts.
With this in mind, clients should also be always vigilant when it comes to helping uphold these standards. Whether you are in business administration career as a manager or top executive managing day to day operations, or a middle aged employee looking for good investments, a good retirement plan, insurance, or solid financial planning, you must always stay ever vigilant in making sure that your money, and the decisions that would make you either lose or earn money, is in capable, competent, and trustworthy hands.
As with doctors and their Hippocratic oaths, members of the financial sector should also adhere to set rules and policies that would set them apart from shady practitioners and con artists. They should follow strict codes of ethics and should portray themselves as morally correct professionals, aside from being competent and effective. Only then will they be able to earn the trust of their clients and for companies to see their true worth and value. It is something that should be instilled upon them early on in their studies aside from the technical skills and know how in their respective fields.
Clients, too, should research on the backgrounds of their advisers and brokers before dealing in any type of business. Any red flags about records of insider trading or breaking confidentiality agreements should be looked upon immediately, and any infraction of the aforementioned code of ethics should cause you to take your business, and your money, elsewhere. You should be able to find professionals who would be able to uphold these standards and rules to the letter, and only then will you be comfortable in dealing with them.