FPSB launches guidance notes to code of ethics

KUALA LUMPUR: The Financial Services Professional Board (FSPB) has launched guidance notes to the code of ethics to instil a culture of professionalism in the industry through the development and advocacy of professional and ethical standards. The FSPB was launched in January 2016.

The code of ethics outlines a set of five broad fundamental principles to which institutions and individuals should adhere to, namely, competence, integrity, fairness, confidentiality and objectivity.

“The guidance notes provide additional guidance and explanation on how each of the principles in the code of ethics applies in practice through appropriate policies, procedures and processes within an organisation,” said chairman Tan Sri Mohd Munir Abdul Majid.

“These notes explore how the five principles can be achieved and applied in organisations across the FSI. The code of ethics complements the formal system of regulation and contributes towards public oversight of the industry through a code developed by the industry, for the industry, in the public interest,” he said.

Munir pointed out that the guidance notes do not replace any existing laws, regulations and codes, whereby individuals and organisations must refer to the relevant industry standards and applicable laws. Organisations can use the code ethics principles to assess if they have the proper policies and procedures in place.

The guidance notes include a summary of recommended policies, procedures and processes under each ethical principle, a list of do’s and don’ts, common scenarios faced in the industry and suggested responses as well as questions to be asked in situations where a principle might be compromised.

According to Munir, the guidance notes were drafted and revised following consultations with the industry, including a two-day workshop with members of the industry in February 2017, and reviewed by Bank Negara Malaysia and the Securities Commission Malaysia.

FSBP is a voluntary industry-wide initiative focused on the development and advocacy of professional and ethical standards across the financial services industry.