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Research Handbook on Law and Ethics in Banking and Finance
Featuring foreword from Andrew Bailey, Governor of the Bank of England
The global financial crisis evidenced the corrosive effects of unethical behaviour upon the banking industry. The recurrence of misbehaviour in the financial sector, including fraud and manipulations of market indices, suggests the need to establish a banking culture that conforms to the highest standards of ethical and professional behaviour. This Research Handbook on Law and Ethics in Banking and Finance focuses on the role that law should play and the effectiveness of newly introduced regulations and supervisory actions as a driver for ethical conduct so as to reconnect the interests of bankers and financiers with the interests of society.
The global financial crisis evidenced the corrosive effects of unethical behaviour upon the banking industry. The recurrence of misbehaviour in the financial sector, including fraud and manipulations of market indices, suggests the need to establish a banking culture that conforms to the highest standards of ethical and professional behaviour. This Research Handbook on Law and Ethics in Banking and Finance focuses on the role that law should play and the effectiveness of newly introduced regulations and supervisory actions as a driver for ethical conduct so as to reconnect the interests of bankers and financiers with the interests of society.
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Critical Acclaim
Contributors
Contents
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The global financial crisis highlighted the corrosive effects of unethical behaviour within the banking industry. This edited collection focuses on the role that ethics, as well as the law, can play to prevent such behaviour from reoccurring. It also examines the effectiveness of newly introduced regulations and supervisory actions in fostering ethical conduct with the aim of realigning the interests of financiers with those of society as a whole.
Featuring contributions from authors in academia, central banks, and professional practice, this Research Handbook presents a comprehensive assessment of law, regulation and professional and market standards in the financial industry. The chapters discuss the philosophical foundations of ethics in financial law, the existence of a social licence to operate and how to nudge banks to be more inclusive. They also critically evaluate some of the key topics in the debate, including fiduciary duties and enforcement measures.
The Research Handbook will be of great interest to academics, policy makers and practitioners in financial law and banking law, as well as legal ethics. Those working within the financial industry with an interest in corporate conduct and culture, will find the Handbook to be an invaluable source of information.
Featuring contributions from authors in academia, central banks, and professional practice, this Research Handbook presents a comprehensive assessment of law, regulation and professional and market standards in the financial industry. The chapters discuss the philosophical foundations of ethics in financial law, the existence of a social licence to operate and how to nudge banks to be more inclusive. They also critically evaluate some of the key topics in the debate, including fiduciary duties and enforcement measures.
The Research Handbook will be of great interest to academics, policy makers and practitioners in financial law and banking law, as well as legal ethics. Those working within the financial industry with an interest in corporate conduct and culture, will find the Handbook to be an invaluable source of information.
Critical Acclaim
‘This book is a work of leadership. It offers a brilliant combination of thought and experience about the law and ethics that finance and banking cannot do without. This is about ethics and law embedded in international respect, market culture, business purpose, corporate model and personal integrity. It is about the ends that finance and banking enable us to achieve, about finance earning trust, and about finance serving society, customer, employer and colleague. It is also about insisting that complexity is either understood or reduced. Let the global financial crisis remind us that this is a book on which we must build.
– Sir Robin Knowles, High Court of England and Wales
‘This book is path-breaking in addressing one of the key issues of our time, the role of ethics in finance. It provides the reader with a comprehensive and challenging analysis of the main aspects of the current debate. The editors have brought together some of the sharpest minds in the field who offer an in-depth, critical and in places novel analysis of the role of law, self-regulation and standards in guiding and channelling behaviour.
The book is a tour de force in considering how ethical considerations can inform the financial system. Finance must serve society in a way which is fair, just and ethical. The book is a timely reminder of this function and a call to those involved to exercise diligence in their own self-interest and for the greater good.’
– Sir Ross Cranston FBA, London School of Economics, UK
– Sir Robin Knowles, High Court of England and Wales
‘This book is path-breaking in addressing one of the key issues of our time, the role of ethics in finance. It provides the reader with a comprehensive and challenging analysis of the main aspects of the current debate. The editors have brought together some of the sharpest minds in the field who offer an in-depth, critical and in places novel analysis of the role of law, self-regulation and standards in guiding and channelling behaviour.
The book is a tour de force in considering how ethical considerations can inform the financial system. Finance must serve society in a way which is fair, just and ethical. The book is a timely reminder of this function and a call to those involved to exercise diligence in their own self-interest and for the greater good.’
– Sir Ross Cranston FBA, London School of Economics, UK
Contributors
Contributors: C. Barbiani, T.C. Baxter, K.T. Bhala, W. Blair, A. Brener, L. Bucheit, A. Georgosouli, M. Goldby, K. Hunt, M. Lamandini, R. Lastra, M. Monteagudo Valdez, R. Plato Shinar, D. Ramos Munoz, D. Rouch, C. Russo, M.J. Sheppard, S. Thompson, P. Wood, M. Yallop, B. Zotiades
Contents
Contents:
Foreword
Andrew Bailey
Part I The foundations of ethics in banking and finance
1. The philosophical foundations of financial ethics
Kara Tan Bhala
2. Ethics and standards in financial regulation
William Blair and Clara Barbiani
3. Ethical foundation of financial law
Rosa M. Lastra and Marcelo J. Sheppard
Part II The role played by law and standards
4. Nudging inclusive banking and micro finance towards self-sustainability
Katherine Hunt, Marco Lamandini and David Ramos Muño
5. The social licence for financial markets, written standards and aspiration
David Rouch
6. The Development and Implementation of Professional Standards for UK Bankers: A Practitioner Perspective
Simon Thompson
7. What should we do about the law of money, finance, banks and the like?
Philip R. Wood CBE, QC (Hon)
8. Rebuilding Trust in Financial Markets: beyond the Limits of Law and Regulation
Mark Yallop
Part III Can law counteract unethical behaviour? Some examples
9. Ethical Considerations in the Representation of Sovereign Clients
Lee C. Buchheit
10. Law and Ethics: The Bank''s Fiduciary Duty towards Retail Customers
Ruth Plato-Shinar
11. Market timers, late traders and the ultimate insiders
Basil G. Zotiades
Part IV The effectiveness of regulation and supervisory actions
12. Developing the Senior Managers Regime
Alan Brener
13. What makes deterrence credible?
Andromachi Georgosouli
14. Breaches of AML reporting requirements by UK Bankers: Are effective enforcement choices being made by financial regulators?
Miriam Goldby
Part V Are financial regulators ethical?
15. Ethical Culture and Central Banking
Thomas C. Baxter Jr
16. Central Banks and Ethics: the Virtual Paradox of Transparency and Confidentiality Mandates
Manuel Monteagudo
17. Enforcement, ethics and transparency: problems and perspectives
Costanza A Russo
Index
Foreword
Andrew Bailey
Part I The foundations of ethics in banking and finance
1. The philosophical foundations of financial ethics
Kara Tan Bhala
2. Ethics and standards in financial regulation
William Blair and Clara Barbiani
3. Ethical foundation of financial law
Rosa M. Lastra and Marcelo J. Sheppard
Part II The role played by law and standards
4. Nudging inclusive banking and micro finance towards self-sustainability
Katherine Hunt, Marco Lamandini and David Ramos Muño
5. The social licence for financial markets, written standards and aspiration
David Rouch
6. The Development and Implementation of Professional Standards for UK Bankers: A Practitioner Perspective
Simon Thompson
7. What should we do about the law of money, finance, banks and the like?
Philip R. Wood CBE, QC (Hon)
8. Rebuilding Trust in Financial Markets: beyond the Limits of Law and Regulation
Mark Yallop
Part III Can law counteract unethical behaviour? Some examples
9. Ethical Considerations in the Representation of Sovereign Clients
Lee C. Buchheit
10. Law and Ethics: The Bank''s Fiduciary Duty towards Retail Customers
Ruth Plato-Shinar
11. Market timers, late traders and the ultimate insiders
Basil G. Zotiades
Part IV The effectiveness of regulation and supervisory actions
12. Developing the Senior Managers Regime
Alan Brener
13. What makes deterrence credible?
Andromachi Georgosouli
14. Breaches of AML reporting requirements by UK Bankers: Are effective enforcement choices being made by financial regulators?
Miriam Goldby
Part V Are financial regulators ethical?
15. Ethical Culture and Central Banking
Thomas C. Baxter Jr
16. Central Banks and Ethics: the Virtual Paradox of Transparency and Confidentiality Mandates
Manuel Monteagudo
17. Enforcement, ethics and transparency: problems and perspectives
Costanza A Russo
Index
