Which ethical duties are applicable in the asset management process step of establishing financial goals?

In the asset management process, particularly during the step of establishing financial goals, the ethical duties of diagnosing and diligence are critical for ensuring that a client's objectives are clearly understood and adequately addressed.

Diagnosing involves thoroughly assessing the client's financial situation, needs, and aspirations. It is about gathering and interpreting relevant information to identify the client's unique financial goals. This step is fundamental in creating a personalized financial plan that aligns with the client’s expectations and circumstances.

Diligence, on the other hand, speaks to the commitment the advisor has to the client's interests. It embodies a responsible approach to managing the assets and ensuring that the established goals are met with the utmost care. Being diligent means consistently monitoring and adjusting the investment strategy as the client's goals or market conditions change.

The combination of these two duties—diagnosing to understand the client's needs fully, and diligence to ensure that those needs are actively managed—forms the foundation for a successful asset management relationship. It reflects an ethical commitment to serving the client's best interests, adhering to the core principles of fiduciary responsibility in asset management.