The document discusses the importance of ethics in finance, outlining reasons for its necessity such as defining acceptable behaviors and promoting high standards of practice. It highlights ethical issues in finance, including insider trading and conflicts of interest, as well as common excuses for unethical behavior. Furthermore, it suggests strategies to restrain unethical activities, emphasizing the role of comprehensive laws and auditor oversight.

1. Ethics in Finance
Presented by :-
Meenakshi Chhangani

2. Content
O Introduction to
ethics
O Why do we need
ethics?
O Ethics in finance
O Ethical issues in
finance
O Ethical issues in
financial markets
O Excuses for
unethical behavior
O How to restrain
unethical activities
in finance

4. Why do we need ethics??

5. O to define accepted/acceptable behaviours
O to promote high standards of practice
O to provide a benchmark for members to use
for self evaluation
O to establish a framework for professional
behaviour and responsibilities
O as a vehicle for occupational identity
O as a mark of occupational maturity

6. Ethics in Finance
O Ethics in finance is one of the main things which
everyone has to follow from small, medium and big
level company.
O It is considered important as without financial
component no business can run for a long time.
O Ethics in finance may vary from industry to industry
but everyone is liable to do their work at utmost
good faith.

7. Code of Ethics in Finance
O Act with honesty and integrity avoiding conflicts of
interest in personal and professional relationship
O To provide information which is full, accurate, fair,
objective, timely and understandable.
O To promote ethical behavior among other associates
O Respect the confidentiality of info acquired in course
of business except authorized
O Adhere to and promote this Code of Ethics.

8. Ethical issues in Finance
O Insider trading
O Financial markets
O Hostile takeovers
O Financial statements

10. Contd.
OChurning :-
Excessive or inappropriate
trading for clients account
by a broker who has a
control over the account
with intent to generate
commissions rather than
to benefit client

11. Contd.
O Unsuitability:-
Not all investments are
suitable for every
investors. For e.g. : certain
high risk investments are
inappropriate for retired or
conservative investors

12. Contd.
O Unfairness in
markets
The gain of one may equal
loss to other, though
market exchanges are
advantageous to both the
parties

13. Excuses for unethical behavior
O Everybody else is doing it
O Its not that big of a deal
O Its necessary (the end justifies the means)
O Its not going to hurt anyone
O Its legal

14. Contd.
O I deserve this
O It’s for the benefit of company or
somebody else
O Nobody will know.

15. Restraining unethical
behaviour
O Improving standards
O Pledging of shares
O Avoid Weak links
O Comprehensive laws
O Auditor’s role
O Institutional investors