Ethics CE Part 1 Securities CE

The securities industry sets and enforces high ethical standards. The government regulates the industry. The self-regulatory organizations police the firms. The firm’s compliance and legal department police the employees. All of these regulatory bodies have one main function: to ensure the public is dealt with fairly.

Securities industry regulators are very diligent in detecting and preventing unethical behavior. Investigators
regularly examine activities at all levels-from large firms, to investment advisers, to registered reps, to individual
investors. Even the most junior of employees is expected to maintain high standards of business ethics and commercial honor in dealing with customers, the public, the firm and the industry.

To encourage each firm to do its part in preventing unethical behavior, regulators are placing an ever-greater emphasis on the firm’s responsibility to hire only reps who play by the rules.

At some time in your life, you’ve been exposed to the golden rule that states, “Do unto others as you would have them do unto you”. Whether taught by a parent, a teacher or a religious leader, this golden rule not only promises spiritual satisfaction and fulfillment, but it also can serve as a practical guide for registered rep’s daily life.

To a certain extent, ethics is a set of instructions on how to deal daily with a group Ana community. These instructions revolve around a single theme: social behavior that favors the group over the individual.
Antisocial behavior usually stems from individual selfishness and greed-characteristics that are against the common good and disruptive to overall balance and harmony, Because ethical behavior on the part of the individual resulted in group harmony, communities turned to such ethics as the basis for common law, which in turn became the basis for our own civil and criminal codes of conduct.

Ethical business practices can help foster satisfied customers, as well as a stable economy. In this context, ethics is about social justice-making sure that people receive benefits from every decision made.
Unfortunately, our society isn’t always critical of wrongdoing. For example, many people are impressed with the wealth accumulated by some individuals and ignore the means by which it was gained.

The tendency to emphasize personal financial gain is a common way many businesses-including those in the securities industry-motive their employees. Financial gain is often held out as the primary measure of success. This is not to say that pursuit of financial gain is wrong; however, consider how incentives such as “ Top Producer of
the Month” rosters have the tendency to spotlight financial achievement while ignoring professionalism and public service. What about a firm atmosphere that stresses results by any means? Shouldn’t those who have achieved ethical success-those who have best served the needs of their firms and the public-be honored too?

If you concentrate too much on the financial rewards of your job, you might look at a customer and think, “What can I get from him?” instead of, “What can I do for him?” Your relationship with the customer will suffer if you approach him with the wrong attitude.

Certainly, registered reps should expect to be adequately rewarded for success, and production figures are vital to the well-being of any broker-dealer. However, no less important is meeting the needs of customers and the public in a proper and ethical manner. Self-interest is fine, but not when maintained at any cost-the cost of your self-respect and the cost of others.