Question

briefly provide your understanding to one of the principles in FPA Code of Ethics.

please state the name of the practice standards and your understanding

Answer 1

FPA Code of Ethics is a comprehensive code which is aimed to set best standards for ethics and is updated as per the requirements.

One of the principles of this Code deals with Client. It says that our foremost priority should be the client. Our personal gains and interests should not be placed ahead of the client's interests. We should thus act honestly.

There are total 7 practice standards, numbered from PS1 to PS7 as follows:

PS1- Engagement- Here scope of engagement has been discussed.

PS2- Collecting the client's information- It talks about how we can understand client needs and accordingly collect information which can be both qualitative and quantitative.

PS3- Analyze and assess the client's financial status- After studying client information ,we need to identify their needs and priorities.

PS4- Identify suitable financial planning strategies and develop the financial planning recommendations- After developing recommendations the same needs to be presented before the client.

PS5- Implement recommendations-According to client's recommendations we implement them and take responsibility for the same.

PS6- Review the client's situation- We will review and if necessary re-evaluate the client's situation.

PS7- Professional obligations- We should exercise professional judgment, act fairly and ensure there will not be any conflict of interest.