Apply Ethical Frameworks and Principles to Make and Act Upon Decisions (FNSINC514)
Ethics as a decision process
FNSINC514 requires you to apply ethical frameworks to real decisions. Candidates must understand consequentialist, deontological and virtue-based approaches, and how they map onto the industry's conduct expectations: client first, integrity, objectivity, confidentiality, competence and fairness.
Concepts to master
- Identifying an ethical dilemma and the stakeholders affected.
- Applying a decision framework: identify, evaluate, decide, act, review.
- Conflicts of interest: identifying, disclosing, managing or avoiding.
- Whistleblowing and escalation channels.
- The relationship between ethics and the law: legal does not always mean ethical.
Traps in questions
Questions often present a scenario where the legal answer and the ethical answer differ. Another trap is choosing 'disclose and proceed' when the conflict should be avoided entirely. Watch for answers that prioritise the broker's commission over the client's interest.
Rule of thumb
Would I be comfortable if this decision were published? If not, escalate before acting.
Worked example
A broker is offered a bonus for settling a particular product. The ethical response is to disclose the conflict, ensure the product suits the client, and document the reasoning - not to steer the client toward the product for the bonus.