IFA launches business ethics course for financial advisers

The Institute of Financial Advisers (IFA) is to launch the first business ethics course specifically aimed at the financial advisory profession later this month.

The two courses will be run in connection with their forthcoming road shows in Wellington and Auckland.

The two-hour fast paced course has been developed by the Institute of Business Ethics (IBE) in London and is tailored for the New Zealand context.

The material will cover ethical dilemmas and frameworks for decision-making and the impact of the new Code of Professional Conduct, along with practical applications and an overview of business ethics.

According to IFA chief executive Peter Lee, “The IFA has a leadership role both in providing resources and learning tools for our members and in setting ethical standards that respond to the market concerns held by clients.

“The ethics of our industry has repeatedly come under scrutiny and these courses which qualify for continuing professional development credits highlight further steps towards encouraging an ethical culture for our practitioners and service providers.”

“Business ethics training is not a requirement for becoming an authorised financial adviser, as the focus of the new Financial Advisers Act is on basic competency and professionalism.

“However we’ve always stood for excellence that’s beyond competence. This new business ethics course enables those advisers who wish to do more than the basics to learn more and demonstrate their commitment to ethical business and ethical client relationships,” he said.

He says the courses will be open to non-members as well as members, and would also be of appeal to financial services companies.

The Institute of Business Ethics has assisted professional bodies in the UK with developing professionalism courses, in particular the Chartered Institute of Securities and Investment and the Institute of Actuaries.

It has also been in discussion with the UK Financial Services Authority as it has developed new training for independent financial advisers.

The role of the IBE in New Zealand was made possible with the signing of a Memorandum of Understanding with the IFA in December 2010.

Philippa Foster Back, OBE, director of the Institute of Business Ethics said the benefit of course attendance was not just an individual or company matter but one that concerned every New Zealander who wished to have a trusting relationship with their financial adviser.

“It is very important to highlight that lasting relationships are built on trust and integrity, understanding how these values manifest themselves in business is exactly what business ethics training can explain,” said Mrs Foster Back.