Lambert publishes banking standards recommendations: The Banking Standards Review led by Sir Richard Lambert has published its recommendations to the chairs of the seven banking groups that had asked it to develop plans for a professional body to promote high standards in banking. The report follows February's consultation paper. The recommendations propose the Banking Standards Review Council (BSRC) should work to continuously improve the behaviour and competence of all deposit-takers operating in the UK. The BSRC should:

  • require all participating institutions to commit to a programme of improvement of culture, competence and consumer outcomes, and to report performance publicly;
  • set standards of good practice by identifying where there is a need for voluntary standards and working with the industry and practitioners to develop these;
  • report annually on progress both generally and of specific institutions and recommend further action;
  • meet annually with non-executive directors of large institutions to discuss how the institution has progressed and its position in relation to its peers;
  • help to develop principles-based codes of practice to complement regulatory high-level principles;
  • encourage good practice in learning, development and leadership with a focus on behaviour and ethics;
  • help banks meet new regulatory requirements, such as the new Certified Persons regime; and
  • work with professional bodies to improve the value of qualifications.

The report stresses the BSRC will not be an industry lobbyist, do the work of senior management at banks or of regulators, or handle customer complaints. It wants the BSRC to publish a full report on the state of banking standards and good practice in the first half of 2015, with its first annual report on the progress of the industry and individual institutions in 2016. The chairmen of the institutions welcomed the report. The next stage is to appoint the chair of the BSRC, which will be decided by a panel of figures from outside the industry chaired by Mark Carney. (Source: Lambert Review Publishes Banking Standards Recommendations)