You are trading on behalf of a client in fairly large nominals of US bonds. The counterparties in these trades are often people just like you. There’s a commission associated with a client’s trade and there’s also the opportunity, when it arises, to make some extra money from imperfections in the market.
The fundamental challenge in rebuilding the public’s trust in the financial services industry is putting the best interests of customers at the centre of organisational culture, decisionmaking and remuneration arrangements.
Your company has moved some of its agri-business activity off-shore (Country X). The principal attraction is a low-wage environment and a relaxed regulatory regime. Profits have increased since the decision was made...
In recent months you have been working very long hours and spending a considerable amount of time away from your family.
You are a qualified accountant. You have been asked, by your line manager, to complete a costing exercise with a very short deadline and limited resources.
Trust is the talk of the town at the moment. Rebuilding, regaining, retaining. But as much as you think you deserve to be considered trustworthy, it is not something that can be self-nominated. Cris Parker, a Director with The BFSO, explains why.
Boris Bieler CFA, FCPA (Australia) is a signatory to The Banking and Financial Services Oath and raises awareness of the Oath in his role as guest lecturer at Macquarie University and UTS when lecturing on topics around auditing, risk management, corporate governance and ethics in banking. We invited Boris to provide his insights on what he thinks some of the positive challenges might be for the outsourcing and advisory industry, post Royal Commission.
Pauline Vamos, a director with The Banking and Financial Services Oath and the new Chairman of Freedom Insurance gives her take on how the financial services industry can recover and move forward following the Hayne Royal Commission.
A colleague has recently prepared a new spreadsheet which is used to produce a weekly report for the bank’s liquidity committee. You are responsible for updating the underlying data which feeds into the spreadsheet to produce the report...
As an independent organisation, The BFSO is in a unique position to facilitate cross-industry discussions. Following our Chatham House event in August we have released the discussion paper that captures the key themes and topics covered on the night.
By Jodi O'Callaghan, Executive Officer, The BFSO.
As the financial services industry braces for the release of the Final Report from the Hayne Royal Commission, one thing is certain: the financial services industry in Australia will never be the same.
Rhizome Advisory Group's Tamara Scicluna spent 15 years at the prudential regulator, APRA, in roles that spanned supervision, policy and risk advisory across banking, insurance and superannuation. So who better to take a closer look at some of the issues we're seeing at the Royal Commission, and the role individuals can play in shifting culture.
In its Interim Report, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry noted that the explanation for the poor conduct identified was “too often…the pursuit of short-term profit at the expense of basic standards of honesty” (p xix). One initiative already underway to raise standards of honesty and integrity in Australia’s financial services industry is The Banking and Financial Services Oath (The BFSO). This submission outlines the background and purpose of The BFSO and the role it has been playing in rebuilding community trust in this crucial industry.
In an effort to restore trust in the banking sector, the Advisory Committee on the Future of Banks in the Netherlands made a recommendation, which has since been adopted, that bank executives be required to swear an oath akin to the physician's Hippocratic Oath. This examination of the prospects of the Dutch banker's oath addresses two broad issues. One issue is the efficacy of oaths themselves as instruments for achieving the desired end. A second issue concerns the extent to which this particular oath is a useful guide to ethical banking practice.
The BFSO’s Cris Parker took her idea of 'It’s time to start believing in the inherent good of our financial services sector' to the TedXSydney stage at the Opera House recently, when she was selected out of 180 submissions to be one of 20 finalists to pitch her idea ahead of the 2019 event.
In this article, Simon Russell of Behavioural Finance Australia looks at ways individuals can translate The Banking and Financial Services Oath in to practical terms for themselves, and their teams.
In the end, rules, systems, processes and practices are necessary, but having the right culture and performance depends, in the Commissioner's words, "Upon people applying the right standards and doing their job properly".
Photo courtesy of ABC
Almost all scholars agree that we have ethical rules and standards for one essential reason—to enable collaboration among relatively small groups of people. Why small groups? Because modern humans—and their immediate (and unfortunately extinct) cousins (Neanderthals, Denisovans and so forth)—and their distant ancestors (from the common ancestor of us and chimps to Homo erectus) all lived in small groups, so specialising in relating to a small group of individuals became hardwired into our DNA.
Although the Oath is taken by the individual, there are occasions where an organisation will ask all employees to consider taking the Oath, thus becoming 100% committed. This process provides an opportunity for the entire organisation to consider the alignment between their own values and those of the organisation. It provides a common ethical framework with which they can hold each other to account. Heartland Senior Finance made this commitment and it allowed for self-reflection on what a 'sustainable future' means to them.
The growth and adoption of responsible investment is a global phenomenon. Time and again over the last few years we have heard that a tipping point has been reached.
That responsible investing is mainstream.
It’s often claimed that the discipline of financial planning has made considerable progress since its inception some fifty years ago. That may well be true, depending on your definition of the word ‘progress’.
Copies of newspaper articles, magazine articles, journal articles, reports, books and graphs directly benefit thousands of organisations in Australia, who use them to influence, be strategic in decision-making and achieve corporate objectives. Good Copyright Governance is ensuring that the creators of these pieces are being recognised and compensated fairly for their work.
A business case that ignores social issues is no case at all. The business case has not traditionally included the ethical rationale or the moral justification. Fortunately, making the business case for ethics is getting easier.
Factors such as complexity and sophistication of products and services, distribution channels, customer demands and unprecedented advances in technology have resulted in increased political and regulatory intervention into business. GRC professionals are at the forefront of these changes and can contribute as a culture change agent.
Naomi Burley, MD GRC Institute has a look at how compliance and an Oath can go hand in hand.
While working their Banking Governance & Culture Project, the Maturity Institute in the UK came accross National Australia Bank (NAB) and in turn The Banking and Financial Services Oath.
Tim Gorst, Actuary and BFSO Signatory, tells us about the increasing focus on risk culture in financial services and the role of the effective professional.
What role do middle=management play in creating ethical work cultures?
People often view human behaviour in one of two ways. They either see humans as motivated, almost purely, by self-interest or they believe we are inherently humane creatures, concerned for others.
The world abounds with examples of the former (self-interest), particularly in the business world and even more so in banking and finance. I remain hopeful however that more of us operate according to the latter.
A look at how we can make better decisions, more of the time
It’s not uncommon for adults to reflect back on their teenage years and wonder, ‘What was I thinking?’ There may be particular decisions you made that make you question what type of person you were and why you did what you did. The answer for some will be peer group pressure – which is particularly intense in our formative years. But what excuse do we have as adults for poor decisions? The answer is – many!
How does an organisation recover and rebuild from ethical failure? What do you do when you have failed your ethical duties as an organisation, and significantly compromised trust with your stakeholders? These are difficult times for any organisation. The good news is, I do believe that organisations can emerge from ethical failure stronger than what they were prior to the incident.
How the language we use at work can undermine the very cultures we wish to create.
As the banking and finance industry is increasingly held to account by the public, and regulators attempt to grapple with how to best manage risk, the consideration of the role of language in both creating and undermining ethical work cultures is essential.