Regulation  

Firms in financial services take hard line on corruption

The poll by advisory services firm Ernst & Young revealed that 75 per cent of financial firms had a clear code of conduct and anti-bribery policy, compared to 57 per cent across all sectors.

More than 3000 representatives from 36 countries were surveyed, including 458 in financial services.

Nine per cent admitted cases of revenues recorded before they should have been, while 16 per cent were aware of under-reporting costs and customers being sold unnecessary products to meet short-term sales targets.

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Sanjay Bhandari, partner in fraud investigation and dispute services for Ernst & Young said firms in financial services were more likely to act if they suspected corruption.

STATS

65% - employees in financial services who received adequate training on anti-corruption

67% - employees in financial services who felt their company’s anti-bribery policy was relevant

69% - number of financial services respondents who said there were clear penalties

56% - percentage of employees in financial services who said their company had taken action on breaches

ADVISER VIEW

Dan Clayden, director of Devon-based Clayden Associates, said: “It should be 100 per cent of firms taking action, although not everyone is going to be an authorised individual. The fact is in the financial services industry there are requirements on firms to ensure that their employees meet certain standards, especially if they are authorised.”