UK - Financial Services Authority proposals to set out an ethical framework for members will "restrict" rather than promote higher standards, investors warn.
The UK Society of Investment Professionals has criticised FSA plans put to the European Commission which call for an “ethical framework for financial services”.
UKSIP’s regulation advocacy committee chairman Jim Fleming said the plans would slow a rise in standards and there was a need for “principles rather than specific rule”.
The report claimed investors would be more likely to respond positively to encouragement rather than legislation.
It added: “High ethical standards are values to which people and businesses aspire. There is no finite height barrier to such values and neither the FSA nor the European Commission should seek to impose one.”
UKSIP argued a “top down approach to ethics” was needed with directors being held responsible for the company’s ethical culture to which employees adhere.
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