Unit 3 - Topic 8

Question 1

What is Morality?

Answer 1

It is your own view compared to general ethics

Question 2

Definition of Ethics?

Answer 2

Greek word ‘ethos’ meaning habit or custom moral principles that affect the way in which people make decisions

Question 3

What are the three ethical theories?

Answer 3

Normative (or perspective) ethics - considers the content of moral judgements and standards that assess right and wrong
Meta-ethics - considers the nature of moral judgements and investigates the source and meaning of ethical principles
Applied ethics - Applies ethical principles to real life and business situations

Question 4

What is moral intensity?

Answer 4

The degree to which people see an issue as an ethical one

Question 5

What is Moral Absolutism and Relativism?

Answer 5

• Absolute standards, all moral questions are judged against that standard . Right or wrong = dogmatic approach. Phrases - all, none, never
• Relativism - Allows adoption depending on individual contexts. Allows moral to be influenced by customs, culture, or society. Depending on circumstances as well place, time, moral intensity. - Pragrmatic approach
  Rules can change over time, many sets of ethical rules in society, rules can change depending on circumstances

Question 6

What is Denotological Approach?

Answer 6

‘Duty based’ approach - it is the sense of duty or set of rules industry codes are an example, which are a set of rules that are judged against right and wrong
- Moral Absolutism = Not decided on the outcome rather the means is more important

Question 7

What is Teleological/Consequentialist?

Answer 7

Expected consequences when assessing morality of the situation. Result more important than the means.
Lies are okay if positive outcome

Question 8

What are the steps to the AAA Model?

Answer 8

Step 1 - What are the facts of the case?
Step 2 - What are the ethical issues in the case?
Step 3 - What are the norms, principles and values related to the case?
Step 4 - What are the alternative courses of action?
Step 5 - What are the best courses of action?
Step 6 - What are the consequences of the outcomes so that a final decision can b rebased on full knowledge?
Step 7 - What is the decision?

Question 9

What is an ‘ethical professional’

Answer 9

• Follow rules of fair and responsible conduct in there profession
• Exercises independent judgement to do the right thing, especially things not explicitly addressed in code of conduct

Question 10

What are is the 4 Stage Hierarchy?

Answer 10

1) Minimum Standards
What do we have to do?
Short term Goals
Abdicates decisions and responsibilities

2)Compliance Culture
What can we do?
Unthinking, mechanical, compliance
Dependency on regulators

3) Business Improvement
What can we get out of this?
Focus on business reputation
Using ethics as a marketing edge

4) Value led
What should we do?
All staff live the values
We do it because we want to

Question 11

When to whistleblow?

Answer 11

If standards not met and you challenge it but are not being listened to

Question 12

What are the qualifying disclosures for whistleblowing?

Answer 12

• Someones health and safety are in danger
• Damage to the environment
• Criminal offence
• Company isn’t obeying the law
• Covering up wrongdoing

Question 13

When to contact the PRA (whistleblow)?

Answer 13

Employer will cover it up
Employer would treat them differently if they complain
Employer hasn’t corrected the behaviour despite initial reporting procedures being followed

Question 14

What are the extension to the codes by FCA/PRA?

Answer 14

The key players in UK banking and financial services have adopted their own codes in extension. Such as Lloyds Banking Group Code

Question 15

When was the FLA Business Finance Code updated and what are the 5 principles under the code?

Answer 15

In 2016.

• Treat customers fairly and follow all relevant laws and regulations.
• Take reasonable steps to encourage responsible trading between intermediaries and customers.
• Provide customers with appropriate and timely information about their finance agreement.
• Provide effective customer service throughout the period of the finance agreement.
• Operate an effective complaints procedure and ensure this is transparent and easily accessible for customers.

Question 16

What is the non-binding guidance for intermediaries?

Answer 16

Helps to understand what is good practice with 3rd parties and non-binding to abide competition rules as they can’t tell others explicitly what to do

Question 17

What was introduced for the motor trade in 2007 by the FLA for professionalism and more confidence in the motor trade?

Answer 17

Specialist Automotive Finance (SAF)

Includes SAF tests for the motor trade staff and training material

Question 18

What are the 3 sections expected for consumer factsheets?

Answer 18

1) Repaying your loan early
2) Your credit decision explained
3) Credit report fact sheet

Question 19

What are the key steps customer should check at the beginning of an agreement?

Answer 19

Finance agreement
Payments 
Terms and conditions 
Description of the asset  
Status of the supplier
Accuracy and transparency of supplier pricing

Question 20

Best practices between customer and funder?

Answer 20

Initial customer contact 
Initiating a proposal 
Identifying a customer
Providing relevant information 
Finalising an agreement 
Complaints procedure

Question 21

What is required for professionalism in asset finance?

Answer 21

• Asset expertise
• Knowledge of the supply chain
• Understanding of buying patterns and behaviours

Question 22

What are the latest trends in asset finance?

Answer 22

Continued growth = investment in assets
Emergence of the broker becoming the funder and getting their own book
Impact of tech = electronic contracts and financing more intangibles

Question 23

What are the limitations of the industry?

Answer 23

Cost/income challenges of the industry talent

Induction programmes lacking

Question 24

What is CPD

Answer 24

Documenting skills, knowledge and experience that you gain both formally and informally as you work.