chp 3

The bedrock of ethical financial product development. It

embodies the principle that all relevant information regarding a

financial product should be readily available to consumers. Promotes trust and

confidence in financial institutions and ensures that the financial system

functions smoothly.

• Disclosure

• Transparency

What is the 3 types of conflict of interest?

• kickback

• Regulatory change

• cross-selling incentive

• Commissions

Transparent disclosure of fees and risks is a fundamental component of

ethical financial product development. It will leading to negative outcome if customer didn't access to detailed information regarding the cost associated with financial products. This define to what?

what the benefits of safeguarding?

• vulnerability of consumer

• fair treatment

• financial stability

• trust and confidence

what are the consequences of irresponsible lending in financial institutions?

• Economic instability, asset bubbles & regulatory change

• Credit risk exposure, asset quality deterioration & reputation damage

• debt burden & financial stress and distress

Economic instability, asset bubbles & regulatory change. This consequences related to what ?

These conflicts can lead to a situation where an individual or entity

prioritizes their personal gain or the interests of a related party over the

best interests of their clients, customers, or the organization they serve. what related to this statement?