Over the last decade, there’s been an explosion in the number and types of listed products available to Australian investors. There’s been a commensurate increase in the number of investors – and financial advisers – using listed securities and products in diversified portfolios. This article, proudly sponsored by GSFM, examines some of the ethical issues pertinent to the use of listed investments. Reading the article and completing the quiz can earn you 0.75 CPD credits.
The term homo economicus, or ‘economic man’, was first coined by British economists in the nineteenth century, a number of whom built mathematical models based on the economic assumptions contained in the definition – that humans are consistently rational, narrowly self-interested, and pursue subjectively-defined ends. In the 20th century, the term ‘economic man’ was used to describe a person who acted rationally on complete knowledge out of self-interest and the desire for wealth.
Consider homo economicus in the context of ethics, which can be defined as a system of moral principles, the rules of conduct recognised in a particular class of human actions. Every day countless decisions are made within your practice, by you and your colleagues, your clients and theirs, that have to balance the need to meet the economic needs of each party with ethical behaviours.