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Christian financial advisors call for ethical reform at heart of financial system


Dr Rosamund Thomas

Dr Rosamund Thomas

Christian Financial Advisers have called for ethical reform at the heart of the financial system to restore honesty, integrity and fairness. They describe banking bonuses as 'inflammatory' at a time of financial hardship, and say the culture of greed must be halted to prevent future crises.

The Association of Christian Financial Advisers (ACFA) has criticised high bank bonuses for further widening the gap between the rich and the poor. And ACFA is calling for new ethical criteria and better ethical leadership within the financial system.

"There must be integrity and honesty in the financial system if it is to return to a foundation of trust, rather than greed,' said ACFA chairman Aidan Vaughan. 'Ethical values must take centre stage in the financial world. Unless justice and fairness prevail, then the rot at the heart of the financial system will continue to spread."

Dr Rosamund Thomas, the Director of the Centre for Business and Public Sector Ethics in Cambridge, gave the conference keynote address. She said: "The whole world economy is put at risk if there is a widening gap between the rich and the poor and unethical behaviour in the financial industry."

Dr Thomas described the multi-billion pound bonuses still being awarded to UK financial workers as 'inflammatory', when many citizens are experiencing financial hardship, unemployment and increasing costs.

She added: "Is it any wonder that public demonstrations globally are taking place in the light of an increasing gap between rich and poor?"

Dr Thomas called for ethical reform of the financial system to restore honesty, integrity and fairness and said the banking crisis of 2007 had revealed a culture of greed, fraud and mismanagement.

She criticised British banks HBOS, Lloyds TSB and the Royal Bank of Scotland for their then "unethical behaviour and extreme risk-taking, with salaries, bonuses and pensions driven by greed."

ACFA chairman Aidan Vaughan also said there had to be a reform of ethics in the financial system. "The proposed banking reforms are unlikely to lead to the ethical improvements that are so urgently needed," he said. "They have to go far beyond being a 'good citizen' to make sure that banks and other institutions at the fulcrum of money transfers benefit all stakeholders over the long-term.

"Financial products and structures need to have a beneficial purpose, rather than being an end in themselves. The City of London should be thought leaders in this field, just as they have been in financial innovation," Aidan Vaughan added.

Dr Thomas warned: "The current range of reforms will not prevent another financial crisis, unless behavioural reforms based on improved ethical conduct are incorporated. As yet, the inclusion of ethical standards is not happening."

Chris Sheldon, interim Chief Executive of Kingdom Bank and an ACFA member, underlined the importance to the economy of a successful banking sector, especially when that has the resources to lend to community organisations.

ACFA is the UK network of Christian financial advisers and related professionals. It aims to be the voice of Christian financial advice and champions best practice in the UK. The ACFA website offers links to Christian financial advisers across the UK.


For more information on ACFA, see: www.christianfinancialadvisers.org.uk

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