Bill Michael, UK head of financial Services at KPMG explained the industry had lost its guiding principles over areas such as sub-prime mortgages, product mis‐selling, rogue traders and LIBOR.
He told the audience: “It’s time for a new banker’s code, one that is relevant for today; a Code that is not a substitute for regulation, but works alongside it. A code that can be used to evidence change and where there is consequence.
“I firmly believe bankers should run banks, not regulators or government. But today bankers are being shut out of the future shape of banking which will ultimately be to the detriment of us all. Only when there is evidence of change will banks be able to engage more meaningfully with regulators and society. Responsible bankers need to be at the top table of economic recovery.”
Michael explained how the code would need to enshrine three core principles; acting in the best interest of the customer, putting reputation before profits and living by the principle of prudence.
“Since the crisis the rhetoric from the financial sector has begun to change ‐ which is a positive sign.
“Banks are apologising, they are talking about their customers, and some have accepted the sector lost its way. It’s time for rhetoric to match reality.
“A banker’s code can help do that, but it needs be real and endorsed by regulators. It needs to be overseen by an Independent Professional Conduct Board that takes sanctions. It provides a framework for the sector to evidence it has changed its ways.”
