View more on these topics

Tyrie banking inquiry extended to look at ‘lapsed’ professional standards

London UK Thames Parliament 480

The Parliamentary Commission on Banking Standards has called for written evidence, including views on whether professional standards in the sector are “absent or defective” and what this means for retail customers.

The commission is being chaired by Treasury select committee chairman Andrew Tyrie and is set to report on 16 December, with its findings being considered for inclusion in the bank reform bill, expected to be published in January.

Earlier this month, Tyrie said the inquiry will be “ringfenced” around what lessons can be learned for banking corporate governance from the Libor-rigging scandal.

The commission wants comments on whether professional standards are absent or defective, how they compare to other professions and the consequences for retail and wholesale customers and the wider economy.

Tyrie says: “Banks should exist to support their customers, both retail and wholesale. Some of these customers have been badly let down. Almost everyone is agreed standards in banking have lapsed. We need to gauge the scale of the problem and identify likely remedies.”

The commission also wants evidence on:

  • The consequences of any lapses in professional standards for public trust in, and expectations of the banking sector.
  • What lays behind any lapses in professional standards, including: culture, the incentivising of risk-taking, the impact of globalisation, regulatory arbitrage, impact of financial innovation and technological developments, corporate structure, including the relationship between retail and investment banking, competition and taxation.
  • What can be done to address any weaknesses in professional standards. Does it require action by the banks themselves, regulators or legislators? Can be achieved domestically or is it reliant on international coordination?
  • Whether current work by Government, regulators and industry is sufficient.

The commission says that the “tight deadline” of reporting by December means they want evidence before 24 August.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. My crystal ball tells me that in the not too distant future, minimum qualification level will be set to level 6. The reaosn? Because everyone knows that as loong as you have qualifications consumers (individual and corporate) place trust in this. Will it get rid of the sharks and crooks? Eh NO. So the end result will be? People will spend loads more money on more useless exams that will not make one iota of difference to what the rogues and sharks do or how they go about it. But atleast people will get ripped off by higher qualified sharks so thats ok. Here we go again. Hugs and Kisses. Meg

  2. It isn’t really qualifications or the life which have impacted standards it’s chasing targets for bonus purposes that causes the problems in FS industry. I worked for a corporate lending company sometime ago where everyone was incentivised to achieve new lending targets….everyone ignored the fact that millions of £’s of that debt was going bad every week! Holes in bucket spring to mind…but nobody cared as they weren’t paid on that…it’s culture that needs to change and that comes from the top!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com