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Ethics Definition
Moral principles that govern a person’s behaviour or the conducting of any activity
Features of information and advice
Accurate
Up to date
Transparent
Timely
Sufficient but not too complex
Factors that influence financial choices
Original want or aspiration
Feasibility of access to a financial product to fulfil the want or aspiration
Information sources
Personality
Price and product features
Reputation of the provider
Role of the FCA
Protect customers, enhance the integrity of the financial system and promote effective competition
Role of the PRA
Promote safety of firms and protect policy holders
Six ‘Treating customers fairly’ outcomes
Fair treatment of customers
Products are designed to meet the needs of identified customer groups
Consumers are provided with clear information before, during and after sale
Advice is suitable
Products and services perform as provider has led them to expect
Consumers do not face unreasonable after-sales barriers to change product, switch provider, submit a claim or make a complaint.
Executive Pay definition
Top directors in large banks receive large salaries and performance-related bonuses
What is the cap that the EU has put on executive pay?
One years salary (two years salary if there is explicit approval from shareholders)
Corporate social responsibility is also known as…
Citizenship or Sustainable responsible business
Corporate Social Responsibility definition
Any action or project in which a company goes beyond the interests of its shareholders and top management in order to benefit other stakeholder groups
Criticisms of corporate social responsibility
❌Can be seen as window-dressing
❌Covers up other less ethical policies
Ethical Investments definition
Those made in companies that make into account the wider impact of their activities on society and the environment
Sustainable Development definition
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Three ways that sustainability can be approached
Economic development
Social Equity
Environmental Protection
Environmental Sustainability objective
Reducing negative human impact on the earth’s ecosystem
Economic Sustainability objective
Reducing undesirable consequences of economic activity by maintaining consumption on a sustainable level rather than trying to achieve continual growth
Social Sustainability objective
Creating communities that foster well-being, peace, security and justice for the people who live in them
Role of the Ethical Investment Association
Give support to financial advisers who want to promote ethical investments
What are affinity accounts?
An account linked to a particular charity or good cause
Two main rules of Sharia Law
Features of Permissible or Halal investments
Note 
Flashcard (20)