Contemporary Challenges in Ethics

It has been a difficult decade for the Australian financial advice industry, as enough ethical failures were aired to instigate a root-and-branch transformation, with new educational and ethical standards burying the remnants of the sales-driven culture that had characterised some practices in the past.

In short, no advice business can say it is unaware of the drive by government, regulators and industry bodies to reinforce the role of ethics as underpinning why the industry exists: to act always in the best interests of the clients who rely upon it, to avoid conflicts of interest and to act with transparency and integrity in all dealings with clients.

Yet the field of financial advice remains fraught with ethical challenges that need more than a re-statement of individual commitment to professionalism, development and integrity. Even the best-intentioned advisers must be conscious of identifying, managing and building organisational resilience to ethical risks.

In the May edition of the INPractice Webinar, The Inside Network will explore the evolving landscape of ethics in financial advice, addressing the complex challenges that Australian financial advisers face in maintaining integrity and professionalism in today's regulatory environment. Participants will gain a deeper understanding of the ethical issues impacting the industry and develop practical strategies to navigate them in their day-to-day practices.

Key topics covered include:

• Regulatory and compliance expectations: An overview of the latest legal and regulatory frameworks, including the impact of the Financial Adviser Standards and Ethics Authority (FASEA) and the Financial Services Royal Commission on ethical obligations.

• Conflicts of interest: Identifying and managing potential conflicts of interest, with strategies for ensuring that client outcomes remain the priority amidst commission structures and product incentives.

• Client-centric advice: Discussing how to deliver advice that aligns with clients' best interests while managing the pressures of sales targets, product quotas, and the increasing demand for fee transparency.

• Cultural and ethical shifts: Examining the broader cultural shift within the financial services industry towards higher ethical standards and how advisers can adapt to maintain trust and credibility with clients.

The webinar aims to equip financial advisers with the tools to navigate contemporary ethical challenges, strengthen client relationships, and ensure their practice aligns with the highest ethical standards in the industry.