HSBC chairman comments on the new jurisdiction and accountability arrangements for bankers. He said the rules are appropriate, fair, and 'reasonably' robust.
NEW BANKERS' RULES: The pain Britain suffered during the last financial crisis was clear to see.
The Chairman at HSBC said the new rules being rolled out to bankers were 'more responsible' and 'entirely reasonable'.
The comments relate to a new regime for managers and leaders in the industry.
It makes top bankers 'directly' responsible for infractions occurring on their watch. The new accountability rules for bankers starts from 2016.
Even so, it got criticized by some banks and finance lawyers. They said the new bankers' rules are going too far and are too difficult to put into practice.
The 'burden of proof' rules will see a reversal. But what does that mean? It means that in the future bankers must prove they took reasonable steps towards infractions. There are consequences for not doing so and they would be deemed responsible.
Some bankers could also go to jail. That is more likely to happen if their reckless behavior leads to the bank going out of business. But, that particular charge would need proving in a court of law.
What caused the new accountable legislation and redress under law? It arose after frustrations that no bankers got arrested after British taxpayer suffered deeply in the financial crisis of 2007-09.
The support given to a number of institutional money lenders was 'taxing' to say the least.
Most would suggest that the direction of travel is right for the country. But, some banks suggest the rules could affect London's ability to compete with many of the rival fiscal organisations.
The new regime is part of an effort to draw a line under misconduct in the financial services. They want people to show they are proud to work in the banking and financial sectors.
The aim is to go back to being honest. They want a situation where everyone can hold their head high and be proud of working in financial services around the United Kingdom.
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