Regulators and firms in financial markets across the world have been striving to improve and optimise the framework describing expected conduct and behaviour of individuals and groups. Documents created to establish such frameworks are known by different terms (e.g. ‘principles’, ‘codes’, ‘standards’, ‘guidelines’, ‘good’ or ‘best practices’, ‘rules’ and ‘regulations’) with varying
meanings and often overlapping expectations.
Codes, standards and regulations respectively each have a role to play in steering best practice and conduct in the financial services profession. Indeed, they serve complementary functions in achieving this important goal. This paper reviews the different roles and complimentary functions of codes, standards and regulations respectively in improving conduct in financial services.
Authors:
Members of the CFA UK Codes, Standards and Regulations Working Group: Samuel Betha, CFA; Andy Burton; Corey Cook, CFA; Glenn Doggett, CFA; David McClean, CFA; and Chris Stears.