What is Morality?
It is your own view compared to general ethics
Definition of Ethics?
Greek word ‘ethos’ meaning habit or custom moral principles that affect the way in which people make decisions
What are the three ethical theories?
Normative (or perspective) ethics - considers the content of moral judgements and standards that assess right and wrong
Meta-ethics - considers the nature of moral judgements and investigates the source and meaning of ethical principles
Applied ethics - Applies ethical principles to real life and business situations
What is moral intensity?
The degree to which people see an issue as an ethical one
What is Moral Absolutism and Relativism?
- Absolute standards, all moral questions are judged against that standard . Right or wrong = dogmatic approach. Phrases - all, none, never
- Relativism - Allows adoption depending on individual contexts. Allows moral to be influenced by customs, culture, or society. Depending on circumstances as well place, time, moral intensity. - Pragrmatic approach
Rules can change over time, many sets of ethical rules in society, rules can change depending on circumstances
What is Denotological Approach?
‘Duty based’ approach - it is the sense of duty or set of rules industry codes are an example, which are a set of rules that are judged against right and wrong
- Moral Absolutism = Not decided on the outcome rather the means is more important
What is Teleological/Consequentialist?
Expected consequences when assessing morality of the situation. Result more important than the means.
Lies are okay if positive outcome
What are the steps to the AAA Model?
Step 1 - What are the facts of the case?
Step 2 - What are the ethical issues in the case?
Step 3 - What are the norms, principles and values related to the case?
Step 4 - What are the alternative courses of action?
Step 5 - What are the best courses of action?
Step 6 - What are the consequences of the outcomes so that a final decision can b rebased on full knowledge?
Step 7 - What is the decision?
What is an ‘ethical professional’
- Follow rules of fair and responsible conduct in there profession
- Exercises independent judgement to do the right thing, especially things not explicitly addressed in code of conduct
What are is the 4 Stage Hierarchy?
1) Minimum Standards
What do we have to do?
Short term Goals
Abdicates decisions and responsibilities
2)Compliance Culture
What can we do?
Unthinking, mechanical, compliance
Dependency on regulators
3) Business Improvement
What can we get out of this?
Focus on business reputation
Using ethics as a marketing edge
4) Value led
What should we do?
All staff live the values
We do it because we want to
When to whistleblow?
If standards not met and you challenge it but are not being listened to
What are the qualifying disclosures for whistleblowing?
- Someones health and safety are in danger
- Damage to the environment
- Criminal offence
- Company isn’t obeying the law
- Covering up wrongdoing
When to contact the PRA (whistleblow)?
Employer will cover it up
Employer would treat them differently if they complain
Employer hasn’t corrected the behaviour despite initial reporting procedures being followed
What are the extension to the codes by FCA/PRA?
The key players in UK banking and financial services have adopted their own codes in extension. Such as Lloyds Banking Group Code
When was the FLA Business Finance Code updated and what are the 5 principles under the code?
In 2016.
- Treat customers fairly and follow all relevant laws and regulations.
- Take reasonable steps to encourage responsible trading between intermediaries and customers.
- Provide customers with appropriate and timely information about their finance agreement.
- Provide effective customer service throughout the period of the finance agreement.
- Operate an effective complaints procedure and ensure this is transparent and easily accessible for customers.
What is the non-binding guidance for intermediaries?
Helps to understand what is good practice with 3rd parties and non-binding to abide competition rules as they can’t tell others explicitly what to do
What was introduced for the motor trade in 2007 by the FLA for professionalism and more confidence in the motor trade?
Specialist Automotive Finance (SAF)
Includes SAF tests for the motor trade staff and training material
What are the 3 sections expected for consumer factsheets?
1) Repaying your loan early
2) Your credit decision explained
3) Credit report fact sheet
What are the key steps customer should check at the beginning of an agreement?
Finance agreement Payments Terms and conditions Description of the asset Status of the supplier Accuracy and transparency of supplier pricing
Best practices between customer and funder?
Initial customer contact Initiating a proposal Identifying a customer Providing relevant information Finalising an agreement Complaints procedure
What is required for professionalism in asset finance?
- Asset expertise
- Knowledge of the supply chain
- Understanding of buying patterns and behaviours
What are the latest trends in asset finance?
Continued growth = investment in assets
Emergence of the broker becoming the funder and getting their own book
Impact of tech = electronic contracts and financing more intangibles
What are the limitations of the industry?
Cost/income challenges of the industry talent
Induction programmes lacking
What is CPD
Documenting skills, knowledge and experience that you gain both formally and informally as you work.
