Are You An Ethical Banker?

The autocrat You are the risk director in a firm of wealth managers, whose chairman has pulled off a coup by poaching a high-profile chief executive from a competitor. The new CEO has made radical changes to the firm’s business methods and culture sales have risen strongly, but so have complaints, while the firm’s reputation has fallen   You report this concern to the risk committee, which is chaired by the CEO, but he makes it clear your comments are unwelcome. Further problems arise involving a third party investment product, which received heavy public criticism for poor performance, resulting in its withdrawal. Your firm has been a major promoter of this product, which has generated significant income for the firm. You report again to the risk committee, where the CEO is, once again, hostile to you and reminds you 'everyone, including you, is on course for significant bonuses on the basis of this year’s figures, so don’t rock the boat'.   The risk committee minutes, which are copied to the board, make no mention of your concerns, and you write a file note about this. You raise the accuracy of the minutes with the CE Owho says he has no intention of bothering the board with scare stories and 'you had your say at the risk committee, where you were in a minority of one'.   You are convinced that inaction is storing up serious problems.  What should be your next step?

• You decide to have one last attempt to see the CEO but his PA says that he is very busy and will not be available for a month
• You will discuss your concerns with the senior independent director before the board meeting in two weeks’ time
• You resolve to mention this, informally, to your regulatory supervisor at the next scheduled meeting in 10 days’ time