Phil 1404 Unit 4 discussion

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University of the People *

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Philosophy

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Dec 6, 2023

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Phil 1404 UNIT 3: Discussion assignment Department of Health Sciences University of the People Instructor: Pablo Markin PHIL 1404 September 23, 2023 Employers in financial services must have stringent codes of professional behavior for their employees to observe. Even given such a code, how should employees honor their fiduciary duty to safeguard the firm’s assets and treat clients equitably? What mechanisms would you suggest

for keeping employees in banking, equities trading, and financial advising within the limits of the law and ethical behavior? Employees working in financial institutions must always act in the best interest of their clients; doing everything they can to uphold their fiduciary duties. This means ta=hat they must place their client’s needs above the companies’, while avoiding any conflicts of interest. The employees must also strive to be as honest and forthcoming about any risks included with all potential financial decisions made for or by their clients. They must act with integrity; doing the right thing even when no one is looking. This helps avoid any potential risky behavior or conflicts of interest. Finally, they must comply with all local and federal laws that govern finances, especially the ones that cover insider trading and overall fiduciary duties. Here are some mechanisms that employers can use to keep employees in banking, equities trading, and financial advising within the limits of the law and ethical behavior: Financial service business entities should have a clear and concise code of conduct; one that covers professionalism- from the mundane to the most important decisions being made. This way employees are aware that everyone is expected to act with integrity, honesty, and conscientiousness. Employees should be regularly trained in ethical practices, evolving finance laws, as well as identifying conflicts of interest, and how to report insider trading. This can be done by establishing a culture that encourages ethical actions, as well as respect for their clients’ assets.

Employers should have a system in place that allows for the investigation, disciplining and remediation of violations. It must be impartial, not taking tenure or seniority into account when investigating allegations of insider trading or conflicts of interest. This case dominated the headlines in the 1980s and the accused in this case were all severely fined and received prison sentences. How do you think this case might be treated today? As finance laws have gotten more complicated, penalties have gotten heftier when someone is convicted of SEC violations. Insider trading has become even more frowned upon, especially when those in high offices abuse private information. Such is the case of former Indiana congressman Stephen Buyer, who was just convicted on insider trading charges, receiving a 22-month prison sentence (DOJ, 2023). Should employees in these industries be encouraged or even required to receive ethical certification from the state or from professional associations? Why or why not? Ethical training should be required of all people who manage any type of asset for private or public clients. This would ensure that any employee in question is fully aware of their fiduciary duty, as well as the laws that govern their profession. Having trained and certified professionals historically improves trust between the public and financial professionals; this would only bolster that trust.

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