6.2 Professionl And Ethical Behaviour And Standards In Banking Flashcards
Values
Things that are important to us and that guide our actions, behaviours and decisions.
Our values reflect our beliefs in what is right and wrong
Ethical values - what the bank think is acceptable
Ethics
Branch of philosophy
Encourages to think how to live a good life, our rights and responsibilities.
Example of ethical claims: people should respect each other
Bankers should not lie to customers
Professionals should act with integrity
Integrity
Is about being honest and having strong moral principles.
Conduct regulation and ethics
They do don’t always go well together.
Example:
There are some activities that do not break a law or regulation, but some people would feel like it is unethical .
Profession
Group of individuals who adhere to ethical standards and who hold themselves out as they, and are accepted by the public.
Line of work that needs high-level of education.
Distinctive features of professions/professionals
- Specialised skill and knowledge.
- Maintain and develop specialised skills.
- Professional has more specialist knowledge in their field than the customer
- Public relies on the professionals expertise
- Act in the public interest and clients interest (they place trust in the professional and relies on them to provide advice and assistance)
- Professional body
Banking is a profession
Having core banking knowledge and being customer focused
Professionals in Banking must act in the public interest with high levels of integrity .
Behaving in a way that promotes the collective well-being of the community
Community includes: customers, employees, investors, financial community,
Codes of practise, conduct and ethics
Set of written rules or standards on how people in a profession should behave.
A rule based code
Clearly defines the rules that are to be followed.
Sets out details of what you can and can’t do.
A principle based rule
Sets out broad value that guide the behaviour and decisions of members.
Does not provide rules for every situations.
More flexible and wider scope.
Disadvantage - no specificity guidance or rules to follow for specific situations.
The chartered banker code of professional conduct
Seven commitment as a member of CBI have to commit to:
- Treating all customers and colleagues with respect and acting with integrity.
- Maintaining my professional knowledge and acting with due skill and considering the risk and implications of my actions and advice
- Being open and cooperative.
- Treating customers fairly
- Demonstrating proper standards of market conduct at all time.
- Acting in an honest and trustworthy manner.
- Treating information with appropriate confidentially and sensitive, sensitive
Principle 1: treating all customers and colleagues with respect and acting with integrity
Integrity means being honest
Professional integrity means complying with a code
Showing customers and stakeholders that they are valued .
Principle 2: developing and maintaining professional knowledge and acting with due skill, considering the risk and implications of my actions
Holding myself accountable for my actions and the advice that I give
Making sure you have the right skills and knowledge to do the job
Example: knowing the details of the financial products being provided and keeping up-to-date with changes in products and regulations
Principle 3: being open and cooperative with the regulators
Not misleading or withholding information
Be aware and comply with all relevant regulations and legal requirement .
Example: sending regulators reports often
Principle 4: acting in the interest of customers and treating them fairly
Treating customers fairly includes being impartial and not allowing personal interest to affect customers interest.
Example: listen carefully to find out the custom needs and circumstances and apply your expertise to help them choose suitable financial products.
Not doing something illegal or unethical
