Element 1-Ethics and Integrity in Financial Services Flashcards
Key Principles of ethical behaviour in Financial Services
Clear & Honest
Impartial & Open
Straightforward & Transparent
Informed & Fair
Meaning & Characteristics of ESG
ESG stands for Environmental, Social Governance
ESG is linked to ethics whether a company is “doing the right thing”.
Environmental criteria:
How much energy the company uses and how responsible it is in conserving energy.
Social criteria:
Contribution and support to a local community.
Governance criteria:
Diversity of company’s management and BoD. (Age, experience, ethnicity and gender).
What is the role of Responsible Investment?
Benefiting the environment and society.
What are the types of Impact Investing?
Two types of impact investing
Gender Lens Investing & Microfinance
Gender Lens Investing is about focusing on Investments that will promote gender equality, providing opportunities to women. These opportunities could be providing capital to enable women to launch or expand their businesses, or to help fund products and services that will benefit women and girls.
Microfinance tries to make an impact on low income or unemployed individuals, who would not normally have an access to conventional financial services. Microfinance typically takes the form of low value loans (microloans) that are often combined with some financial or business education.
What is LIBOR?
the London Interbank Offered Rate
