The body established by the financial regulator, the Financial Conduct Authority (FCA), welcomed the Parliamentary Commission on Banking Standards’ call for higher professional standards for bankers.
It called for a new ethical code for bank directors.
Consumer Panel Working Group chair Mike Dailly said: “We welcome the publication of the Commission’s report and support its recommendations aimed at improving the behaviour of bankers.
“Bankers in key positions need to have the same high professional standards as other professions such as doctors and solicitors given the devastating impact their recklessness can cause.
“We are delighted that our call for tougher professional standards has been endorsed with the suggestion of a new Senior Person Regime and a new set of Banking Standards Rules.”
In its long-awaited report publisehed yesterday, the Commission criticised the government’s handling of part-nationalised UK banks and recommended criminal sanctions for senior executives who behave “recklessly”.
It called for “clear lines of accountability and enforceable sanctions” to ensure senior bankers are held responsible for their businesses.
The consumer panel endorsed the introduction of criminal sanctions as a backing of any implementation of new standards of conduct.
“Bankers must understand that the high levels of remuneration come with high levels of responsibility. All banking executives should demonstrate the highest levels of professional and ethical standards in line with their pay and status. Where these standards are not met they, like those in comparable professions, should feel the full weight of the law.”
