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At a time of financial turbulence in Europe, and with trust in financial institutions at a record-low level, it is more important than ever that integrity and ethical behaviour are demonstrated by monetary and financial enterprises and institutions. Finance should serve the common good, and reinvigorating ethics in the financial industry is an imperative. To contribute to these aims, ACCA (the Association of Chartered Certified Accountants) and the CFA Institute, active supporters of the Ethics in Finance- Robin Cosgrove Prize, organised its fifth edition in Brussels, hosted by Othmar Karas, MEP, in collaboration with Kay Swinburne, MEP, at the European Parliament.
Othmar Karas, MEP, co-host of the event said: “The Ethics issue shall not only concentrate around financial services – it must be a general value in the European Union and it must be an export article of the EU. The Robin Cosgrove Prize helps promoting trust and ethical behaviour in all aspects of the financial sector. These matters are important in Europe and in all other parts of the world, as we all know that there will be no growth and jobs without the help of the financial industry.
“People and their unethical actions - extensive risk-taking, poor governance - have undermined the trust in the financial sector. Members of the European Parliament are working hard to regain trust and confidence of the people. Strict rules are important to re-establish trust in the financial markets. But there must also be a shift in culture within these institutions. It is not only the rules that will change the game, it has to be the people. I thank the initiators of the Robin Cosgrove Prize for their help in making this shift. The Prize reminds all of us that ideas are the starting point for every change. They help to pave the way for a stable and ethical financial system”.
Dr Carol Cosgrove- Sacks, Founder of the Robin Cosgrove Prize, said: “The Prize has a world-wide impact and promotes greater awareness among young people with an interest in accountancy, banking, insurance and related financial industries, in traditional and emerging financial products, of the necessity of ethics in finance. Its mission is to be an agent of change and its aim is to strengthen the sustainability of ethics in banking and finance and to reinforce its implementation throughout the world.
“It is especially appropriate to speak about the Prize at the European Parliament, because at heart the Prize reflects core European values. I would like to urge all the financial sector firms and NGOs represented today to consider using the competition for the Prize in Ethics in Finance as a tool in their training and personal development programmes, and to work with us to encourage their finest young professionals to apply.”
Dr Kay Swinburne, MEP, who co-hosted the event concluded: “As a politician working in the ECON Committee, I can tell that there is no shortage of legislation. High frequency trading is very much on our agenda and the European Parliament deserves to have some credit for the legislation on this topic. We were ahead of the curve on some of the issues, but we felt there was scope for further manipulation of our financial markets. However, all the legislation in the world is not going to make any difference unless we bring ethics back to the financial sector.
“As a former banker, I can tell that things have changed. We need to get back to what banking should really be about, that is, serving the customer. No matter how many more rules we have, it is clear that we also need to change our thinking, and we need to change the way that those who practice financial services actually think about it too. We need to look at best practices around the world. It is not only about the rules; it is certainly about trying to find how we can embrace a cultural change. I feel that we have a long way to go, but there is open-mindedness, not just amongst the politicians setting policy, but also amongst those who are actually practicing it and trying to serve the customers”.