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The UK Financial Services Authority (FSA) should publicly adopt the Securities & Investment Institute (SII) Code of Conduct, says Simon Culhane, Chief Executive of SII.
In the November/December edition of the SII members’ magazine, Securities & Investment Review, Mr Culhane discusses the issue of trust and reputation, indicating that regulators in several Middle Eastern countries, which are keen to become global financial centres, are now seeking the SII’s assistance in devising a Code of Conduct and creating a strong, integrity-based culture.
In the past, he says, the FSA has “shied away from the whole subject of ethics and integrity, preferring to stick to clear rules and guidance.” However, he points out, in the recently published CP 07/4 on training and competence, the FSA stated for the first time that “appropriate ethical behaviours are also important – these are closely linked to the corporate culture of the firm and a key responsibility of senior management”.
“This is welcome”, says Mr Culhane, “as it is hard to see how the FSA can avoid the ethical arena, particularly as it is adopting a more principles-based approach. After all, what are ethics if they are not principles-based?”.
“Therefore, given that more than 35,000 members, 35 firms and at least three other countries’ regulators have adopted the Code of Conduct or support the principles behind it, why doesn’t the FSA publicly either adopt or adapt the Code, just as the SII adapted it from the good work done by the Worshipful Company of International Bankers?”.
