Reference no: EM133205096
Gifts, benefits, hospitality and your ethics
Scenario
Xavier is a friend in Adelaide who, like you, is a finance and mortgage broker; you are based in Sydney so aren't in competition with each other. Xavier entered into a referrer agreement with a national real estate agency called Ray-Courts last year and has been getting quite a few cool thank you gifts.
Xavier has mentioned that Ray Courts really show their appreciation to mortgage brokers that get good results with their referred clients. They "shout" brokers for weekends away, all expenses paid, give them tickets to corporate boxes at sporting events and gift vouchers. Ray Courts are owned by AAMC Bank. Xavier's told you that a lot of his loans are now settled by AAMC Bank because for the most part their products are on par with other lenders that he has on his lending panel.
Xavier is encouraging you to contact Ray Courts in Sydney to see if you can get into a referral arrangement as well with the possibility of benefiting from these kinds of rewards. You ask Xavier if he has listed these gifts in his gifts, benefits and hospitality register and he says he listed half of them, so he's still being honest by notifying that he gets gifts.
If you are unable to open the embedded Ethical Decision-making Frameworks document to assist you with answering the following questions, it is available for download from your Resources tab in your Learning Centre.
Knowledge questions
- Answer whether Xavier is acting ethically or not and which include information on which Obligation/Rule he may need to analyse.
Click here to refer to RG 273 Best Interest Duty
- Do not look at Section B 'Acting in the consumer's best interests'.