ASIC financial adviser exam, Professional commitment, ethical frameworks and referral question: advice fee in error

ASIC examProfessional commitment, ethical frameworks and referral

Esther, a licensee's remediation lead, finds that 600 clients were charged an advice fee in error, some by less than A$5. Although those clients would never notice, she insists that every one is refunded, saying each person should receive what they are due. Esther's reasoning reflects the…

A care ethics lens
B utilitarian lens
C common good lens
D justice lens

Show the answer and explanation

Answer: D. justice lens

The Markkula Center's Framework for Ethical Decision Making (revised Nov 2021) summarises the justice lens as the idea that each person should be given their due, often read as fair or equal treatment. Refunding every affected client, however small the amount, applies that idea. The utilitarian lens would weigh the total cost of refunds against the total benefit, which could favour skipping the small amounts. The common good lens looks at the welfare of the community as a whole rather than what each person is owed. Care ethics focuses on relationships and individual circumstances, which Esther does not mention.

Common mistake

'What they are due' is the signature phrase of the justice lens.

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