Ethics and morale values. These are two very important key words for a financial practitioner. Whether this comes from an institution as a whole or individual financial advisers, ethics and morale values are the foundation of society. Without ethics and morale values, there is only decline. Consider the following:

1. Lousy mortgage loans are securitized and packaged as bonds received AAA ratings from credit rating companies. It does not take a scientist to know that if an underlying consists of worms, the package as a whole cannot transform itself to another animal (say a tiger or a lion). It is a misrepresentation to say that a worm is a tiger. To put it more directly, misrepresentation is another word for being a liar. Why would anyone want to lie? This is due to rewards for lying and the lack of accountability. As employees of a firm, they think they can just resign the next day without accountability.
2. Regular premium ILP with absolutely no guaranteed insurance cover due to its escalating insurance cost is being mis-sold to policyholders who have no desire to absorb such risks. Clearly this is another case of misrepresentation and another case of being a liar. Why misrepresents? The same reason as above – there is no accountability. For financial advisers,, it is now apparent to see that MAS likes to taiji its regulatory function to “independent parties.” It has to take some demonstrations at Speaker Corner and support from mass media just to get MAS to do some work. As many people have lost their respect for MAS, it just means that financial advisers do not see themselves accountable. Without accountability, misrepresentation continues.
3. As directors and executive of corporate enterprises only have one aim in mind: which is to “maximize” shareholders value. They employ risky tactics such as high sales quota for their sales force. Instead of focusing on professionalism, they focus on revenue. The irony of doing this is shareholders value get eroded due to increase liabilities and litigation cost.

How can a person “acquire” ethics and morale values? It is impossible to “acquire” ethics and moral values. The human being is born as an immoral person. When a baby is born, by default the child will tell lies. Parents have to teach them not to tell lies. Why does the young child tell lies? It is because by default the human heart is corrupt. Unless the child is taught and held accountable for their action, lies and deceit will always be the default behavior.

In the corporate and business world, lies and deceit are the default behavior. While there are many regulations, it has been said that rules are meant to be broken. People can always find way to work round the rules. Unless a person is held accountable to a higher authority, lies and deceit are the ways which they conduct their daily business.

Are you accountable to a higher authority?