View more on these topics

Lee Robertson: Tackling unethical behaviour


The chatter on the blogs about the proposed merger between the IFP and the CISI, and whether the former’s members taking the latter’s ethics paper will enable them to secure the chartered wealth manager title, has got me thinking about ethics once again. You see, I have previously taken the CISI paper and it got me thinking at the time.

The thing is, I sometimes struggle with the whole “ethics” discussion and tend to think it is just a fancy word for good behaviour.

I had this conversation with my team the other day. I opined that virtually all of us were brought up with the values and concepts of not telling lies, not dropping litter, treating each other the way we would wish to be treated and not stealing. Yes, we might all fail with these principles from time to time (no one is perfect, after all) but, generally, we understand what good behaviour is and how it should form part of our core as good human beings.

With this in mind, is it necessary that we should be taught and examined on a module in ethics in order to demonstrate the fact we can be trusted to act with compassion, understanding and integrity towards our clients? What is more, is it even possible to teach an adult ethics or ethical behaviour?

My gut reaction is that you cannot. It must surely already be instilled within us during our formative years and from the experiences we gain in business.  Nevertheless, I thought I should find out more and so I turned to our trusty friend Google for help with my opinion.

There were lots of arguments for and against, of course. However, I was particularly interested in an article in the Harvard Business Review, which quoted a new study by David T. Welsh and Lisa D. Ordonez.

They assert that the road to bad behaviour is usually a gentle slope and those with growing opportunities to behave unethically are much more likely to rationalise bad conduct while gathering pace downhill than if they were presented with one big opportunity to act badly. All sorts of interesting academic evidence is cited to support this viewpoint. It usually begins with “rounding up” and rationalising minor indiscretions before progressing to more problematic and unethical behaviour. Sadly, it also suggests that a few bad apples can influence generally good people around them to bad behaviours.

However, if their study is correct, it also comes to the conclusion that some nudges towards good behaviours can have the opposite effect. Even the subconscious exposure of people to ethical content and actions increased their moral awareness and prompted more ethical behaviour.

So it appears that an ethics exam may well be extremely useful after all, particularly for nudging those beginning to drift towards bad behaviours back towards the good ones.

Lee Robertson is chief executive of Investment Quorum


Greek PM Tsipras quits and calls early election

Greece’s prime minister Alexis Tsipras has announced his resignation and called an early election following the country’s latest bailout agreement with European creditors. Earlier this month the Greek parliament that would see the country secure a further €85bn (£61bn) in funding. In order to receive the money over three years, more products and services in […]


Commodity assets halve from 2011 peak

Assets invested in commodity funds have halved from their peak four years ago, hitting $127bn (£80.9bn) in July, data from Lipper shows. The assets have been hit by both outflows and underperformance of funds, as commodity prices have plummeted. Over the past three months to July commodity funds have seen $3.2bn in outflows, with the […]


Fidelity American fund manager Kaye departs

Peter Kaye has left Fidelity, stepping down from the Fidelity American fund he was recruited to turnaround two years ago. Kaye will leave the company “by mutual consent” on 1 September after he has finished a transition period. He is passing the reigns of the fund to Aditya Khowala, who already runs the American Growth SICAV. Kaye […]


Nic Cicutti: In defence of trail commission

Will advisers and their trade bodies need to go to the barricades to defend trail commission? The possibility of this happening has been raised, according to Money Marketing, by the revised Markets in Financial Instruments Directive. A story by MM head of investment news Laura Suter raised the issue last week in an article on […]

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. Lee

    The first 5 paragraphs had me nodding vigorously. It’s when I came to the final paragraphs that I sighed a bit.

    I have trawled my way through Ethical Theory – Strategies and Concepts by Bernard Rosen and apart from almost losing the will to live I really didn’t find it illuminating or of particular value.

    Unfortunately like so much else today the topic has been PC’d to death.

    Before, apart from being a county in South East England people were basically either honourable or spivs. The whole topic can in my view be boiled down to a few sentences.
    It isn’t enough to comply with the letter of the law – it’s the spirit that is just as important. Just remember do as you would be done to. What else do you need to know about effics?

    • Hi Harry, thanks for the feedback on my random ramblings, I think we are pretty much on the same page in relation to instilled good behaviour and ethic dealings with clients. Just musing on the wider subject. Hope all is well with you.

  2. It appears to me that the problem seems to mainly be caused by unregistered individuals and companies that are not FCA approved. So what difference does it make having an exam on ethics when the people who have no ethics will never sit it. The FCA need to step up their game and stop unapproved companies from trading.
    Whenever I have had a client wish to transfer into a SIPP to invest offshore the advice has always come from an unapproved outfit of cowboys.

    • No arguments from me here David, I am staggered by the sheer number of offshore and unapproved types masquerading as ‘advisers’ to a largely unsuspecting public. More does need to be done to protect the man and woman in the street.

Leave a comment