Importance of Ethics in the Securities Industry

Ethics is crucial to the viability of capital markets. Without it, exists the potential to incapacitate the growth and development of the securities industry.

Over the years, securities markets around the world have been plagued with a myriad of cases of professionals utilising wrongful business practices to defraud clients, employers and their peers for personal gain. Following the global financial crisis of 2007-2009,  the Financial Crisis Inquiry Commission (FCIC) was established. The FCIC, in its 2011 report, concluded that one of the main reasons for the crisis was due to a “systemic breakdown in accountability and ethics.” Since then, regulators have reformed their regulatory regime to deter such unethical practices.  Notwithstanding this, ethical violations persist as individuals or entities continue to take advantage of loopholes in the legislative system. In this regard, regulators encourage professionals in the industry to develop a strong ethical culture in their operations to help maintain the integrity and confidence of capital markets.


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