Ethical behaviour and conduct risk
So the Economist Intelligence Unit’s findings that 53 per cent of financial services executives believe career progression at their firm will be difficult without “flexibility over ethical standards”. Martin Wheatley might well think this is 'Un-be-liev-able'*.
When you think of all the scandals going through the banks there really does seem to be a problem with culture. Board members should have high ethical standards and believe in doing the right thing. This is written through all the regulations around fit and properness and the approved persons code of conduct. There is really no room for anything other than inflexible ethical standards when it comes to Conduct Risk and treating customers fairly.
Some firms seem to think compliance is tough but as former US Deputy Attorney General Paul McNutty said 'If you think compliance is expensive - try non-compliance.'
Really there is no such thing as being too compliant and compliant behaviour should just be about the way things happen routinely and not some straight jacket of constraint. Actually it leads to long term profitable business that is just about planning and taking care to achieve the right outcomes for both your customers and your business. This in essence is the meaning of applying Conduct Risk principles to your business. The right conduct produces the right outcomes.
* according to Money Marketing