What is a code of ethics in financial services?

A code of ethics in financial services is fundamentally a set of guidelines designed to establish and communicate acceptable behaviors for professionals within the industry. This code serves to promote integrity, professionalism, and trustworthiness among financial practitioners. It outlines the principles and standards that guide decision-making processes and interactions with clients, colleagues, and the broader community. By adhering to these guidelines, professionals can ensure that their conduct aligns with the moral and ethical expectations of the industry, fostering a culture of accountability and transparency.

These ethical frameworks are particularly crucial in financial services, where trust and confidence play significant roles in client relationships and the effective functioning of markets. They help safeguard the interests of clients and stakeholders by emphasizing the importance of honesty, fairness, and respect in all business dealings.