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.
Foreword
Andrew Bailey
Introduction
Sir William Blair, Prof Rosa Lastra, Dr Costanza Russo
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
Sir William Blair and Clara Barbiani
3. Ethical foundation of financial law
Rosa Lastra and Marcelo Sheppard
Part II The role played by law and standards
4. Nudging inclusive banking and micro finance towards self-sustainability (the ethical role of regulation and self-regulation)
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 Wood
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 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 Valdez
17. Enforcement, ethics and transparency: problems and perspectives
Costanza A Russo
