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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

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Global Conduct Regulation

Global Conduct Regulation

Roger Miles

25 years: Behavoural science & conduct

Roger describes conduct regulation around the world by listing some examples of regulators and their individual approaches to protecting customer interests.

Roger describes conduct regulation around the world by listing some examples of regulators and their individual approaches to protecting customer interests.

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Global Conduct Regulation

9 mins 4 secs

Overview

Conduct regulation is a practice meant to hold banks and financial institutions responsible for their actions. In the video “Conduct 101”, the rules and attributes of how conduct is regulated is discussed to provide a deeper insight into why conduct regulation was introduced in the first place. After the Global Financial Meltdown in 2008, conduct regulation started to become extremely prevalent across the world.

Key learning objectives:

  • Know the multitude of ways that regulators measure conduct

  • Understand which financial institutions are the leaders in conduct regulation

  • Explain why conduct regulation was created and why it is a popular policy amongst citizens

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Summary

What are the ways that conduct is regulated?

Conduct regulators don’t just look at legal certainty, as in the legally defensible value in a contract you’ve sold.  Conduct is interested in your vulnerability to changes in public opinion, for example, after the scandals in Australia and the Baltic States. Conduct approach is when regulators apply behavioural science to customer protection. It is not simply making decisions after negligent conduct has happened but rather it is used to prevent any future conduct violations.

How has conduct regulation become widespread?

Conduct regulation has grown at a furious speed globally since its UK launch in 2013 and there are other countries who have their own versions that predate this formal launch. Why is the Conduct regime taking over the world’s financial markets?  Well, to sum up ten years’ research in less than 20 words:  It’s popular with the voters, treasury ministers, and faster-acting than old-style econometric regulation.

Why does conduct regulation “work”?

  1. Popular with Voters - It makes governments look good if they can put badly behaving senior financial managers under the spotlight. After the 2008 Financial Meltdown, banks and financial institutions have been seen in a negative light. By ensuring that they will be regulated, voters sense more trust with the government
  2. Popular with Treasury Ministers - Windfall revenues from enormous conduct fines look good on the nation’s balance sheet. And faster-acting than old-style regulation because, under a Conduct regime, essentially a regulator can say straight to a senior manager in person, “see you in court”, on suspicion of misconduct, without having to build a complex technical product-based case against the firm as a whole

Who are some of the Financial Institutions that focus on conduct regulation?

  1. The Central Bank of the Netherlands – De Nederlandsche Bank - The Netherlands has a strong history, over more than 30 years, of applying behavioural science to designing all kinds of law-making, not just financial regulation.  The Dutch pioneered the use of the behavioural lens. DNB’s work has a huge and continuing influence on other central banks and regulatory agencies
  2. The New York Federal Reserve - The New York Fed is extremely important when looking at conduct regulation. Just recently, the New York Fed held its second annual conference on Reforming Culture and Behaviour in Financial Services. In this conference, they reference various points regarding how conduct should be regulated and the importance of holding financial institutions in check
  3. Financial Conduct Authority - In the UK, the FCA lays claim to being the world’s first regulator specifically tasked with policing conduct in financial services, but as we’re beginning to see, there are other regulators around the world who had a head start on them.  The FCA has embraced behavioural science very keenly and has published a series of papers which show how they want to use it to challenge biases, protect consumers, and make sure that everyone takes personal responsibility for ethical consequences when selling financial services

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