Learning Objectives:

  • Understand consumer protection in banking.

  • Explain conduct regulation and Treating Customers Fairly (TCF).

  • Understand corporate governance requirements for banks.

7.1 Consumer Protection in Banking

Consumer protection is a key regulatory objective . Key requirements include :

  • Fair Lending: Prohibiting discrimination in lending.

  • Transparency: Clear disclosure of product terms and conditions.

  • Dispute Resolution: Mechanisms for handling customer complaints (e.g., Banking Ombudsman) .

  • Data Protection: Compliance with data privacy laws such as GDPR .

7.2 Conduct Regulation and TCF

Conduct regulation focuses on the fair treatment of customers and market integrity. Key principles include :

  • Treating Customers Fairly (TCF): Ensuring customers are treated fairly.

  • Market Abuse: Prohibiting insider trading and market manipulation.

  • Conflicts of Interest: Identifying and managing conflicts between the bank and its customers.

7.3 Corporate Governance

Corporate governance is a critical element of banking regulation . The Koenig compliance training covers “Corporate Governance in Banks/Non-Banks/Financial Institutions” as a core topic . Key principles include :

  • Board Oversight: Clear separation of responsibilities between the board and management.

  • Transparency: Open and honest communication with stakeholders.

  • Accountability: Clear lines of responsibility.

  • Risk Oversight: A robust risk management framework.

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