Introduction

Life Insurance Settlement Association (“LISA”) Code of Ethics (the “Code”) and Standards of Professional Conduct (“Standards”) are fundamental to the values of LISA and essential to achieving its mission to lead the life settlement industry by setting high standards of integrity and professional excellence. High ethical standards are critical to maintaining the public’s trust in the life settlement markets and in the life settlement industry. The Code and the Standards are intended to promote the integrity of LISA members (“Members”) and serve as a model for measuring the ethics of life settlement professionals, regardless of industry segment or local laws and regulations. All Members must abide by the Code and Standards. Violations may result in disciplinary sanctions by LISA. Sanctions can include, but are not limited to, suspension or revocation of membership and revocation of the right to use the LISA service mark.

The Code of Ethics

Members must:

- Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients and colleagues in the life settlement industry, and other participants in the life settlement markets.

- Place the integrity of the life settlement industry and the interests of clients above their own personal interests.

- Use reasonable care and exercise independent professional judgment when conducting an analysis of potential life settlement transactions on behalf of clients, making recommendations to clients or potential clients regarding life settlement transactions and engaging in other professional life settlement activities.

- Act and encourage others to act in a professional and ethical manner that will reflect credit on themselves and the life settlement industry.

- Promote the integrity of and uphold the rules governing life settlement markets.

- Maintain and improve their professional competence and strive to maintain and improve the competence of other participants in the life settlement marketplace.

Standards of Professional Conduct

I. Professionalism

 A. Knowledge of and Compliance with the Law

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.

II. Integrity of Life Settlement Markets

 A. Market Manipulation

Members must not engage in practices that distort prices of potential life settlement transactions with the intent to mislead market participants.

III. Duties

 A. Prudence and Care

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:

1. The information concerns illegal activities on the part of the client or prospective client,

2. Disclosure is required by law, or

3. The client or prospective client permits disclosure of the information.

IV. Life Settlement Advice and Recommendations

 A. Diligence and Reasonable Basis

Members must:

1. Exercise diligence, independence, and thoroughness in analyzing life settlement transactions        and making recommendations regarding potential life settlement transactions.

2. Have a reasonable and adequate basis, supported by appropriate research and investigation, for any recommendation or action with respect to a potential life settlement transaction.

 B.  Communication with Clients and Prospective Clients

Members must:

1. Disclose to clients and prospective clients the basic format and general principles of the processes they use to analyze life settlement transactions and construct portfolios and must promptly disclose any changes that might materially affect those processes.

2. Use reasonable judgment in identifying which factors are important to their life settlement analyses or recommendations and include those factors in communications with clients and prospective clients.

3. Distinguish between fact and opinion in the presentation of life settlement analysis and recommendations.

V. Conflicts of Interest

 A. Disclosure of conflicts

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.

VI. Responsibilities as a LISA Member

 A.  Conduct as Members

Members must not engage in any conduct that compromises the reputation for integrity of LISA or the integrity of the life settlement industry.

 B.  Reference to LISA

When referring to LISA or LISA membership, Members must not misrepresent or exaggerate the meaning or implications of membership in LISA.

VI. Certification

 A. Initial Certification

 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. 


VIII. Review

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.


This Code of Ethics and Standards of Professional Conduct was approved and implemented by the Life I