This lesson examines the regulatory framework designed to ensure ethical conduct in financial services and protect consumers .

3.1 The Regulatory Framework for Conduct
Financial services are governed by laws and regulations designed to ensure fair treatment of customers and market integrity . Key areas include:

  • Consumer Protection: Rules against mis-selling, unfair contract terms, and deceptive practices.

  • Market Abuse: Prohibiting insider trading and market manipulation .

  • Anti-Money Laundering (AML): Legal obligations to prevent financial crime .

3.2 Legislative and Professional Code Obligations
Financial services professionals have obligations under legislation, regulation, and industry codes of practice . The IBSL curriculum includes “Corporate governance and market ethics” as a key learning area . Students learn to apply the legislative and regulatory framework underpinning codes of ethics .

3.3 Enforcement and Regulatory Expectations
Regulators possess enforcement tools including fines, sanctions, and prohibition orders. The Compliance Institute programme explores “regulatory expectations” and the “5 Cs, CPRA model, Consumer Impact model” used in supervision . The impact of the current regulatory environment on ethical decision-making is a key topic of study .

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