This lesson examines the professional ethical standards expected of treasury professionals, based on the ACT’s Ethical Code .

8.1 The Importance of Professional Ethics
Corporate treasurers should act in accordance with the highest professional standards . The treasury function deals with large sums of money and sensitive financial information, making integrity, independence, and professional competence absolutely critical. The fundamental philosophy is that treasury professionals should uphold the standards of integrity and fair dealing required for the honest conduct of business and the effective functioning of financial markets .

8.2 Fundamental Principles of the ACT Ethical Code
The ACT Ethical Code outlines six key principles governing the conduct of treasury professionals :

  1. Integrity: Avoiding conflicts of interest, serving employers honestly and in good faith, and fulfilling duties of trust .

  2. Independence: Making professional judgements and giving opinions independently .

  3. Courtesy and Consideration: Treating all contacts with respect .

  4. Professional Competence: Complying with technical and professional standards, and carrying out duties with reasonable care and skill .

  5. Confidentiality: Refraining from disclosing or using confidential information for improper purposes .

  6. Compliance: Complying with laws, regulations, and conventions of the countries and markets in which they transact business .

8.3 Conflicts of Interest and Professional Duties
A core ethical challenge for a treasurer is managing conflicts of interest. A treasury professional has duties to multiple parties :

  • Employer: Avoiding misleading statements or omissions.

  • Members of the Public or Shareholders: Ensuring the accuracy of documents prepared for external use.

  • Bankers and Counterparties: Honouring the trust placed in them in dealings.

  • Fellow Employees: Acting as a person of professional integrity.
    Treasurers must ensure their employer is aware of any personal business they conduct with parties who also conduct business with their employer, and disclose any benefits received .

8.4 Gifts, Services, and Hospitality
Accepting gifts, services, or hospitality is a common ethical dilemma. The ACT Code provides clear guidance :

  • Members must not accept gifts in any way which could affect, or appear to affect, their judgement, loyalty, or the proper performance of their duties.

  • They must avoid any impairment of their integrity and independence of judgement.

  • They must ensure their employer is aware of and has agreed to any personal business with parties who also conduct, or seek to conduct, business with their employer

PreviousNext