FIN 502 Chapter 20: Chapter 20.docx
Document Summary
Two matrices which guide the analysis of ethical issues: One axis both matrix has in common is ethical indicators: issues matrix s e i r o g e t a. Information asymmetry: difference between what the client knows and what the planner knows. Stakeholders: the different people or institutions whom the decision or situation affects. Ex: granny smith"s retirement plan (has many stakeholders to consider) Ethics indicators l s r e d o h e k a t. Practitioners must behave honestly, obey the law, act in their client"s interest and obey specific professional rules. Outside quebec, planners possess a very wide variety of skills and education levels (no uniform regulation) Modern society reduce ethical problems in occupations by instituting regulation. Regulation can take two broad forms: (canada uses a mixture: government mandate, self-regulation. There is no uniform regulation of the activity of financial planning itself, and no restriction on who may claim to be a financial planner .
