Standards of Conduct and Ethics
What is the securities industry based on?
Trust and Confidence.
(give full points if either is said)
Is the national self-regulatory organization that oversees the securities industry.
IIROC
Understand your client's situation before making investment recommendations.
Know your client
The individual or cultural measures of the worth we place certain ideas and
behaviour. They are generally of two types: end and means xx.
Values
An xx arises when we are faced with two or more choices and we must make an ethical decision.--
ethical dilemma
Can be defined as a set of values or morals that guide individual behaviour
Ethics
xx is based on factors that include a client's current financial situation, investment knowledge, investment objectives, time horizon, and risk profile. xx must also be considered in light of concentration and liquidity of securities within the account.
Suitability
Understand the products you recommend
Know your product
The values that help define our personal goals, which may be years away, are our xx. These include accomplishment, security, and social recognition. Include a sense of accomplishment, service to people, security, a world at peace, and social recognition, which can be viewed as goals toward which we strive
end values
When faced with a decision in a xx situation, the ethical choice is obvious because the other choice is clearly wrong.
right-versus-wrong
Are the rules and habits of conduct established according to society's perceived standards of right and wrong.
Morals
The ethical requirement to understand each client's situation is known across the industry as the xx. This obligation is a paramount concern and should be the focus of your daily business as an RR. Until you know a client's particular situation, you cannot make suitable investment recommendations for that client.
Know Your Client
The requirement to provide advice to clients fully, honestly, in good faith, and with the proper skills and knowledge is referred to as xx
Duty of care
The actions we take today to achieve our goals are directly influenced by our xx. Include ambition, openness, or competence
means values
An xx ethical dilemma occurs when our central beliefs regarding the right way to act are present in two or more of the possible choices—in other words, when our core values are in conflict.
right-versus-right
For the purposes of this course, we treat xx as a continuous process of examining our choices and making decisions within the context of moral
principles.
Ethics
As an RR, before recommending the purchase of any investment product to a client, you must first understand how it is constructed and how it is likely to perform in various market conditions. The xx requirements set out the obligations of the firm and the registered individual that support the need to determine suitability.
Know Your Product (KYP)
A concept related to duty of care is xx, which is a higher standard imposed by common law. xx exists in circumstances where one person must place trust in the honest intentions of another person who holds greater authority or expertise.
Fiduciary duty
A xx is one in which end values and means values mutually reinforce and support each other
unified value system
4 categories of right-versus-right dilemmas
1. Truth versus loyalty
2. Individual versus group
3. Short term versus long term
4. Justice versus mercy