James Shipton, executive director of intermediaries
at the Securities and Futures Commission (SFC), has urged
financial institutions to focus on ethics. He also revealed
that the regulator will pay closer attention to
banks’ culture and decision-making structures.
Speaking at a forum to introduce the Asia Capital Markets
Institute, a new organisation promoting professionalism and
best practices in the Asian capital markets, Shipton stressed
the importance of market integrity and corporate culture
following the financial crisis.
Regulatory responses to the crisis have largely
focused on prudential and market structure rules. But that
won’t prevent another financial crisis without
cultural change. A focus on ethics is also needed to improve
public trust in the financial system.
"I subscribe to the view that the financial industry has
– both collectively and individually – over
many years, surrendered an ethical standard for a legal one,"
he said, adding that a legal standard is...