CHP 1

The definitions of ethics and governance?

• The bedrock of ethical financial product development. Promote trust and confidence in financial institution.

• The set of moral principles, values,

  and standards that guide human behaviour and

  decision-making. It refer to a code of conduct prioritizes honesty, fairness, transparency, and

  responsibility in financial transactions and decision-

  making.

• Value honesty, transparency and efficiency in decision making and well-being behaviour in financial institutions.

• The system

  of rules, practices, and processes. ensure

  accountability, transparency, and compliance with legal ethical

  standards.

The importance of ethics

• To ensure responsible and ethical behaviour within the organization

• Reforms to strengthen financial governance systems

• To create an environment of trust and transparency

• To robust and resilient financial sector

Which of the evolution of financial industry is TRUE?

• Mesapotamia, Modern era, Globalization & Technology

• Pre-modern era, Modern banking, globalization & digitalization

• Clay tablet, currency exchange, Multinational banks & online banking

• technology advancement, record-keeping, becoming central bank & the free flow capital

Statement: Responsible and trusted in financial services, must build trust and confidence.

Treating all parties involved customers, employees or investors with impartiality non-negotiable

• Transparency

• Honesty

• Responsible

• Fairness

Enron's notorious downfall in early 2000s was primarily due to a lack of transparency in its financial reporting. When the truth about its financial health emerged, the company filed bankruptcy and its executives faced legal reperecussions. This case was title for what framework?

define honesty..

• Dealings and reporting is paramount. Misrepresenting

  financial information can have severe consequences, not only for the

  organization but also for the broader economy.

• Ethical financial decision makers prioritize the disclosure of all relevant

  information to stakeholders. Transparency builds trust and confidence

• Equity and fairness are fundamental principles of ethical financial decision

  making. Treating all parties involved whether customers, employees, or

  investors with impartiality is non-negotiable.

• Bernie Madoff's Ponzi scheme is a stark reminder of the devastating

  consequences of financial dishonesty. Madoff's fraudulent activities led to

  massive losses for investors and significant damage to the financial

  industry's reputation.

The importance of governance

• To create an environment of trust and transparency

• Reforms to strengthen the financial governance systems

• To robust and resilient financial services

• To ensures responsible and ethical behaviour within organization

What regulatory bodies involve?

• FSA 2013

• SECURITY COMMISION MALAYSIA

• IFSA 2013

• BNM

Functions of SC and BNM in financial services?

• Primarily regulatory authority overseeing Malaysia capital markets, include stocks and bond markets

• Responsible for monetary policy and financial stability. and implements monetary policy to maintain price stability and economic

  growth.

• establish the regulatory framework for financial institutions, including banks,

  insurers, and other financial intermediaries.

• provisions to protect consumers' interests, ensuring fair treatment and

  disclosure of financial products and services.