Abstract

This paper explores the importance of promoting and sustaining integrity in financial institutions and among the personnel entrusted with the management of other people’s wealth, for example trustees. Fiduciary responsibilities and trusteeship are prevalent in many financial systems globally. As such, it is essential for financial institutions to promote good ethical conduct so as to maintain public trust, curb financial malpractice and safeguard the overall integrity of the financial markets. Prior to addressing the risks emanating from the lack of integrity in the financial sector, it is essential to identify the underpinning elements that contribute to the lapse of integrity. The lack of integrity in financial institutions and their relevant personnel often results in conflicts of interest, corruption, lack of transparency and regulatory oversight. This paper argues that promoting and maintaining integrity in the management of other people’s wealth is not merely a regulatory obligation but also a moral imperative. Robust regulatory mechanisms and fostering a culture of ethics and accountability in the financial sector could address the root causes of integrity breaches and financial malpractices. Considering the interconnectedness of the financial space, cross-border coordination and the establishment of international best practices to enhance integrity are indispensable. This paper proposes proactive international cooperation and collaboration to enable early identification of emerging risks and coordinated responses globally. An environment that motivates self-reporting of potential misconduct and protects whistleblowers, could rectify ethical lapses promptly. The author explores the potential of technologies such as artificial intelligence and block chain as measures to enhance transparency and security in wealth management.