Ethical Dilemmas Facing Financial Advisors

Limited scholarly attention has been given to the self-reported ethical values and ethical challenges of financial advisors. This peer-reviewed article authored by Azish Filabi, JD, MA, and Domarina Oshana, PhD, helps address this gap by examining advisors' perspectives on ethical values, ethical challenges, and industry dynamics that shape ethical decision-making.

Based on 11 individual in-depth interviews with U.S. financial advisors, the qualitative study explores the values that shape client-related decisions, the interplay between those values and sociocultural norms, and the circumstances in which aligned interests may also become conflicts of interest. The findings reveal the top ethical dilemmas financial advisors face, shared through their own voices, including conflicts of interest, compensation structures, and industry complexities that can undermine client trust. The study also highlights how personal values and broader industry systems interact to shape ethical practice.

By drawing directly on practitioners' experiences, rather than relying primarily on secondary sources such as codes of conduct, regulatory frameworks, or theoretical models, the study provides a unique perspective on the ethical realities of financial advisory practice, including the nuanced experience of moral injury in the profession.  

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View the published article (subscription required for full text): Qualitative Insights: Field-Based Perspectives on Ethical Dilemmas in U.S. Financial Advisory Practices.