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 a complex web of regulations designed to ensure fair treatment of customers and market integrity. Macquarie University’s unit covers “the principles and practices underpinning professional conduct and governance”. 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) and Anti-Insider Dealing: Legal obligations to prevent financial crime.

3.2 Enforcement Tools and Regulatory Expectations
Regulators possess a range of enforcement tools to ensure compliance, including fines, sanctions, and prohibition orders. Warwick University’s module covers “enforcement tools” and “insights from the Fair and Effective Markets Review”. The University of Exeter module also examines the “impact of a range of legislation and regulation on current banking practice and the extent to which it is designed to rebuild trust and confidence in banks”. This reflects the regulatory environment’s focus on restoring public trust in the financial sector.

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