What is a financial advisor's code of ethics designed to do?

The financial advisor's code of ethics is essential for promoting standards of integrity and professionalism within the industry. This code serves as a framework to ensure that advisors prioritize their clients' best interests, maintain high levels of honesty, and uphold the trust that clients place in them. By guiding advisors in their conduct, the code aims to foster confidence and reliability in financial advice, enhancing the overall reputation of the advisory profession.

The focus on integrity means that advisors should always act in a manner that upholds ethical principles, including transparency, fairness, and accountability. This commitment not only protects clients but also helps to maintain the credibility of the financial markets and the advisory profession as a whole.

The other choices reflect concepts that are not the primary focus of the code of ethics. For example, mandating specific investment strategies would limit advisors' ability to tailor recommendations based on individual client needs. Similarly, restricting the types of clients they can serve would contradict the inclusive nature of financial services. Enhancing personal wealth is not aligned with the ethical obligations that prioritize client interests above personal gain.