Code of Ethics and Standards of Professional Conduct (LISA)
Members must understand and comply with all applicable laws, rules, and regulations (including the Code and Standards) of any government, regulatory organization, licensing agency, or professional association governing their life settlement activities. In the event of conflict, Members must comply with the more strict law, rule, or regulation. Members must not knowingly participate or assist in and must dissociate from any activity that would result in a violation of such laws, rules, or regulations. A Member should instill ethically conscious behavior in its employees and representatives and encourage and direct them to promote high standards of professionalism in the life settlement industry.
B. Independence and Objectivity
Members must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.C. Misrepresentation
Members must not knowingly make any misrepresentations relating to a potential life settlement transaction or other professional life settlement activities.D. Misconduct
Members must not knowingly make any misrepresentations relating to a potential life settlement transaction or other professional life settlement activities.
Members must not engage in practices that distort prices of potential life settlement transactions with the intent to mislead market participants.
Members have a duty to act with reasonable care and exercise prudent judgment in the course of their business dealings related to the life settlements industry.B. Fair Dealing
Members must deal fairly and objectively with counterparties when providing advice regarding potential life settlement transactions or services or engaging in other professional activities.C. Performance Presentation
When communicating life settlement performance information, Members must make reasonable efforts to ensure that it is fair, accurate, and complete.D. Preservation of Confidentiality
Members must keep information about current, former, and prospective clients confidential unless:
Members must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective obligations and/or duties to their clients and prospective clients. Members must ensure that such disclosures are delivered in plain language, and communicate the relevant information effectively.B. Priority of Transactions
Life settlement transactions for clients must have priority over transactions in which a Member has a financial or other interest.
When referring to LISA or LISA membership, Members must not misrepresent or exaggerate the meaning or implications of membership in LISA.
As part of the application process for membership in LISA, each applicant for membership shall review the LISA Bylaws, the Code, the Standards and any other approved policies and procedures promulgated by the LISA Board of Directors (the “Board”), and shall certify compliance in writing as directed by LISA. If an applicant refuses to provide such certification, they shall be ineligible for LISA membership.B. Annual Certification
Every Member shall certify annually, on a form provided by LISA, that they are in compliance with the provisions of the LISA Bylaws, the Code, the Standards and any other approved policies and procedures promulgated by the Board.C. Failure to Certify
Any Member who fails to provide certification as prescribed by the Code and Standards is subject to having its membership suspended or revoked by the Board in accordance with LISA Bylaws and procedures promulgated by the Board.
The LISA Board of Directors shall periodically monitor the relevance and effectiveness of the Code and the Standards. It is the intention that the Code and the Standards shall be a living document and shall be updated, as required, taking into account any technical, regulatory, economic or social changes, directly or indirectly, in or affecting the life settlement industry.