Government’s review of banks must avoid more rules

“If the government’s review of the banking industry, announced today, focuses on creating more rules it is destined to fail”, said Leo Martin of business ethics advisers GoodCorporation.

“Scandals such as mis-selling and more recently LIBOR have been caused by poor behaviour rather than a lack of rules.  In order to avoid a repetition of these scandals, the review must look at the principles and the culture within these organisations in order to establish why they are producing such evidently unethical behaviour.

“The review must ascertain why principles-based regulation, such as the Financial Services Authority’s Treating Customer’s Fairly framework, failed and consider the need for genuinely independent ethics auditing to help challenge and improve corporate behaviour in this sector.”

Posted July 2012

Notes to Editors:

1. Leo Martin is available for interviews, briefings or written comment

2. GoodCorporation is a leading adviser in the field of business ethics, specialising in the assessment of responsible business management and anti-corruption practices.

3. GoodCorporation works with multinationals, FTSE 100 companies and SMEs to help measure,

manage and implement responsible business practices.  Our clients include 12 FTSE 100 and 6 CAC40 organisations including GDF-SUEZ, Total SA, Centrica, BG plc, BBC Worldwide, Shire plc, BAE Systems, FTSE, Telefónica and Xstrata.

Media Enquiries:

Sally McGeachie 020 8877 5300 or sally.mcgeachie@goodcorporation.com