Subject Title - INSETA

A provider must continuously monitor compliance with its conflict ofinterest management policy and annually conduct a review of thepolicy.A provider must publish its conflict of interest management policy inappropriate media and ensure that it is easily accessible for publicinspection at all reasonable times.A provider or representative may not avoid, limit or circumvent orattempt to avoid, limit or circumvent compliance with this sectionthrough an associate or an arrangement involving an associate.8.5 ETHICAL CONDUCT IN THE FINANCIAL SERVICES INDUSTRYEthics is the study of morality, or right and wrong behaviour. Businessesoften compile their own Codes of Ethics, which serve both as a „compass‟ forstaff and a declaration to clients, stakeholders and the public.It is often said that countries have different approaches to business ethics.One of the reasons is found in the cultural differences between countries andeven between cultural groups within a country. What is regarded as ethical inSouth Africa may be unacceptable in China. Therefore one cannot rely oncultural issues to define business ethics; the focus should rather be on thehuman moral understanding and application that transcend international andcorporate boundaries.“When ethics is applied to business we consider the implications of economicactivity on the interests of all who are part of such activity.” 74Ethical conduct in the financial services industry includes the following – butis definitely not limited to: Disclosure and transparency by FSPs when applying for licences andconducting business thereafter. Disclosure, honesty and integrity of representatives, key individualsand FSPs. Internal measures in an FSP – such as conflict of interest policy, codeof ethics. Interaction between product suppliers and FSPs should betransparent and based on mutual understanding and applications ofethical conduct.74http://www.skillsportal.co.za/contributors/dessquire/090805-business-ethics-honestycode-conduct.htmviewed on 11 October 2009150 © INSETA - Section 1 12a