IFA signs international agreement with UK-based IBE

1 December 2010
A unique partnership between institute heavyweights the Institute of Financial Advisers (IFA) and UK-based Institute of Business Ethics (IBE) is set to provide the financial services sector with internationally recognised best practice business ethics training for the first time in New Zealand.

IFA chief executive Peter Lee says New Zealand’s financial markets will be strengthened if financial advisers and professionals in the broader financial services sector abide by internationally researched best practice standards in business ethics.

“The law is getting more prescriptive in terms of disclosure and transparency but there are many grey areas that legislation does not address,” Lee says. “There are many ethical issues financial advisers face on a regular basis that are not prescribed by law and from which financial advisers would benefit from some guidance. We are pleased to say that today’s announcement is part of our commitment to excellence and leading the way in this sector of the industry.”

In a memorandum of understanding between the IFA and the highly regarded IBE, financial advisers will from next year be able to participate in a New Zealand oriented Business Ethics course tailored for the finance sector.

IBE director Philippa Foster Back says its London-based institute works with several professional bodies in the United Kingdom and advises more than 30 Government and internationally headquartered corporations worldwide. But this is the first time it has collaborated with an overseas based institute which will exclusively market the course to fellow financial services professionals. The course will be delivered by IBE’s locally based Associate Jane Arnott.

"Doing business ethically is an integral part of establishing trusting relationships and an effective business culture, and I am delighted that the Institute of Business Ethics will be able to contribute towards a stronger appreciation of professional ethics in the New Zealand finance sector by working with the IFA," says Philippa Foster Back OBE, Director of the IBE.

"The leadership displayed by the IFA in this area will help ensure that financial advisers in NZ are indeed amongst the best trained and most professional at what they do. I hope that this partnership will be the first of many in New Zealand."

The launch of the course is timely given the introduction of new legislation requiring advisers to be authorised before giving financial advice. Financial advisers who intend on becoming an Authorised Financial Adviser (AFA) are required to be registered from 1 December if they wish to receive AFA accreditation and continue to operate as a financial adviser by 1 July 2011.

An example of an ethical issue the course might address includes how to advise vulnerable clients.
“How to advise medically frail people who for the first time are seeking to invest their savings in their progressively aged years, and whether advisers should agree to advise a client whose preference differs from appropriate advice given their age and risk profile is an issue which branches into the area of ethics.”

“We are pleased to say that this and other areas where potential conflicts of interest could be raised will be addressed in our new course, Business Ethics for the Financial Adviser,” Lee says.

“The benefits extend not only to IFA members and professionals in the financial services sector but to the investing public who seek the advice of business ethics trained professionals.”

As outlined in the memorandum of understanding, the IFA will be responsible for promoting and administering the course to its members while the IBE will bring its intellectual property to the course. The IFA and IBE will also develop a parallel course for managers and senior staff in the financial services sector.

ENDS

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