This lesson examines the professional ethical standards expected of treasury professionals. The ACT’s Certificate in Treasury includes a dedicated unit on “Ethics, governance and regulation in treasury” .

7.1 The Importance of Professional Ethics

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.

7.2 Fundamental Principles of the ACT Ethical Code

The ACT Ethical Code outlines key principles governing the conduct of treasury professionals:

• Integrity: Avoiding conflicts of interest and serving employers honestly.

• Independence: Making professional judgements independently.

• Professional Competence: Complying with technical and professional standards.

• Confidentiality: Refraining from disclosing confidential information for improper purposes.

7.3 Conflicts of Interest

A core ethical challenge is managing conflicts of interest between the treasurer’s duties to their employer, shareholders, and counterparties. 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.

7.4 Gifts, Services, and Hospitality

Accepting gifts, services, or hospitality is a common ethical dilemma. Treasurers must not accept gifts in any way which could affect, or appear to affect, their judgement, loyalty, or the proper performance of their duties .