Ethics and Professional Conduct
What CF6 tests
Ethics and professional conduct tests integrity, client best interest, conflicts, confidentiality and competence in practical situations.
Core rules
- Act with integrity, objectivity, competence, confidentiality and professional behaviour.
- Put the client's interest first; disclose fees, commissions and conflicts in writing.
- Suitability: know the client, understand the product, match them and document the rationale.
- KYC and AML: verify identity, source of funds and monitor unusual transactions.
- Protect client data under the NDPA 2023; keep records; handle complaints fairly.
- Do not guarantee returns, misrepresent products, borrow client money or act outside licence.
Worked example
An adviser recommends a life policy paying commission, although a cheaper alternative exists. The adviser discloses the commission, compares both products on cover, cost and exclusions, and documents why the recommended policy is suitable. If the conflict cannot be managed, the adviser declines the sale. Reasoning: disclosure alone does not cure a conflicted recommendation; the client's interest and suitability determine the advice.
Traps
Commission-driven advice; undisclosed referral fees; using confidential data for marketing; giving advice outside competence; signing client signatures; promising returns.