NAIFA’s Code of Ethics Has No Exclusivity Code

This article considers a few of the obligations in the NAIFA Code of Ethics and how they may be affected by inclusion.

By Frank Bearden, Ph.D., CLU, ChFC

If we review the NAIFA Code of Ethics, we will notice a single important point in both the Preamble and the Obligations: Our code has no exclusivity code. This means that we have no restricted focus on clients or financial services professionals based on racial or ethnic origin.

Since 2017, NAIFA has sponsored a Diversity Champion Award to “recognize the value of our differences and advocate for all members of our community.” We have embraced “inclusion for all, including those that experience discrimination or underrepresentation” (tdc.naifa.org/ diversitychampion).

The Effect Of Inclusion On Ethics

Recognizing this as an important part of our mission, how does it shape our ethics? Let’s consider a few of our obligations in the NAIFA Code of Ethics and how they may be affected by inclusion.

“To work diligently to satisfy the needs of my client by acting in their best interest.”

This obligation provides our focus to clients: to carefully consider their insurance and financial needs and act in their best interest. The obligation holds, irrespective of a client’s racial or ethnic origins, providing a wide market of persons who may need our services.

When we are seeking additions to our existing clients, we should readily describe and offer our services to persons who may have needs we can serve from any backgrounds. These include those whose backgrounds may be different from our own.

“To present, accurately and honestly, all facts essential to my clients’ financial decisions.”

This obligation tells us to share in an accurate and thorough manner the facts needed for our clients to make important financial decisions.

How might this relate to inclusion? As with all of the obligations in the NAIFA Code of Ethics, we should provide no less effort to consider all factors material to a client’s financial decisions, based on the client’s racial or ethnic background.

Carrying Out Our Services To Clients

The last two obligations we will consider also relate to how we should carry out our service to our clients. We’ll look at both of these together.

“To render timely and proper service to my clients and ultimately their beneficiaries.”

“To conduct all business dealings in a manner that would reflect favorably on NAIFA and my profession.”

When we consider how we should carry out our professional obligations to our clients and their beneficiaries, the obligations tell us that our service should be done in a timely and proper manner, which reflects favorably on NAIFA and our profession. Implied in such service is that it be rendered inclusively, without regard to the client’s racial or ethnic origin.

As a closing point, we might remember that the spirit of our code also relates to those financial advisors, planners and agents who are not members but could benefit from association with NAIFA.

Practically, this means that when we meet a new financial professional, we should encourage such a person to explore the resources that NAIFA affiliation may provide.

This would extend to sharing our online resources, opportunities to join online meetings and presentations, and face to face opportunities for engagement, with the invitation to join our fine organization.

This invitation, like the carrying out the obligations of our Code of Ethics, should be done inclusively.