How should investment professionals ensure compliance with ethical practices?

Investment professionals should ensure compliance with ethical practices by regularly reviewing internal policies and adjusting them as needed. This ongoing review process is crucial because the investment landscape, regulatory requirements, and ethical standards can frequently change. By proactively assessing and updating their internal policies, investment professionals can remain aligned with both legal requirements and ethical expectations, which helps to foster a culture of integrity and accountability within their organization.

This approach not only promotes compliance but also underscores the importance of ethical behavior in decision-making processes. It allows professionals to identify potential ethical issues before they arise and makes it easier to cultivate trust with clients and stakeholders, ultimately contributing to long-term success.

In contrast, focusing solely on profits could lead to unethical behavior, relying only on third-party compliance firms can create a false sense of security, and disregarding ethical standards compromises the foundational principles of professional conduct and can result in severe consequences for both individuals and firms.