Qualitative insights: field-based perspectives on ethical dilemmas in US financial advisory practices
Azish Filabi, Domarina OshanaPurpose
Constant regulatory and operational flux makes stability elusive in the financial services industry. Financial advisors serve as strategic navigators for clients, guiding them toward financial security alongside financial firms, government agencies, regulators and associations. Yet, limited scholarly attention has been given to the self-reported ethical values and ethical challenges of financial advisors. The purpose of this study is to examine the values that shape financial advisors' client-related decisions, the interplay between these values and sociocultural norms and the circumstances in which aligned interests may also become conflicts.
Design/methodology/approach
The authors used a qualitative research design, using 11 individual in-depth interviews to explore the values and ethical dilemmas of financial advisors in the USA. Guided by an inductive, exploratory grounded theory approach, the authors shifted from purposive to theoretical sampling to derive concepts foundational for future survey development.
Findings
The results reveal the top ethical dilemmas financial advisors face, shared through their own voices. The authors report how advisors identify and try to navigate conflicts of interest, compensation pressures and the complexities that can undermine client trust. The authors share insights into how personal values influence professional choices and where industry systems may fall short in supporting ethical behavior.
Originality/value
This study uncovers how advisors’ self-reported values influence ethical choices in financial advisory practices, a neglected area in the field. It provides a necessary voice-centered account that fills the gap between theoretical ethics and lived experience and uncovers the nuance of “moral injury” in the profession.