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Intressekonflikter i Investmentbanker

Heide, Elisabeth LU (2010) JURM01 20101
Department of Law
Abstract (Swedish)
Due to the recent financial turmoil we have noticed how exposed our financial situations are. Not only the financial market has been affected but also major socio-economic crises have risen as a result of the recession. Despite this, there is a willingness to take part in trading on the financial market. Considerable amount of money is involved in the securities market which makes it obvious that many of us want to take advantage of this and become participants. This has led to more investment banks establishing businesses in Sweden offering different services like corporate finance and asset management. When offering a variety of services within the same company potential conflicts of interest may arise. The conflicts considered to be... (More)
Due to the recent financial turmoil we have noticed how exposed our financial situations are. Not only the financial market has been affected but also major socio-economic crises have risen as a result of the recession. Despite this, there is a willingness to take part in trading on the financial market. Considerable amount of money is involved in the securities market which makes it obvious that many of us want to take advantage of this and become participants. This has led to more investment banks establishing businesses in Sweden offering different services like corporate finance and asset management. When offering a variety of services within the same company potential conflicts of interest may arise. The conflicts considered to be most undesirable are those that hinder accurate information to become public and further prevents the development of a transparent and efficient financial market. This paper has focused on how valuable information in an investment bank can create conflicts of interest and what the direct consequences for bank customers will be.
Investment banks’ self-regulation has become an essential part in the Swedish law when it comes to conflicts of interest. The law on the Swedish securities market is fairly general and FI has clarified the meaning of the law by publishing regulations and general advice. Investment banks have therefore been able to on their own term choose how to disclose conflicts of interest in their bank. When discussing self-regulation terms like corporate governance and stakeholders are often mentioned. Corporate governance is considered to improve transparency in businesses and create a sense of responsibility towards the company’s stakeholders. When it comes to conflicts of interest, this becomes a difficult task when a part of the corporate governance process is to evaluate oneself and ones own corporate ethics.
The future regulations of conflicts of interest are uncertain but it is clear that the market consider it an important issue, which should be highlighted and discussed. This essay analyses corporate governance and ethical standards and what stakeholders may require from investment banks. The conclusion presented argues that the conflicts of interests and risks that exist are a result of the flow of confidential information within the bank since they work with both the primary and secondary market. Further conflicts of interest will arise from the fact that employees can unfairly appropriate oneself this information. In order to reduce these risks Chinese walls are required in order to provide firewalls between the different departments. Apart from Chinese walls, corporate governance that promotes long-term relationships with clients will minimize the risks of conflicts and lead to greater transparency within the bank. (Less)
Abstract
Due to the recent financial turmoil we have noticed how exposed our financial situations are. Not only the financial market has been affected but also major socio-economic crises have risen as a result of the recession. Despite this, there is a willingness to take part in trading on the financial market. Considerable amount of money is involved in the securities market which makes it obvious that many of us want to take advantage of this and become participants. This has led to more investment banks establishing businesses in Sweden offering different services like corporate finance and asset management. When offering a variety of services within the same company potential conflicts of interest may arise. The conflicts considered to be... (More)
Due to the recent financial turmoil we have noticed how exposed our financial situations are. Not only the financial market has been affected but also major socio-economic crises have risen as a result of the recession. Despite this, there is a willingness to take part in trading on the financial market. Considerable amount of money is involved in the securities market which makes it obvious that many of us want to take advantage of this and become participants. This has led to more investment banks establishing businesses in Sweden offering different services like corporate finance and asset management. When offering a variety of services within the same company potential conflicts of interest may arise. The conflicts considered to be most undesirable are those that hinder accurate information to become public and further prevents the development of a transparent and efficient financial market. This paper has focused on how valuable information in an investment bank can create conflicts of interest and what the direct consequences for bank customers will be.
Investment banks’ self-regulation has become an essential part in the Swedish law when it comes to conflicts of interest. The law on the Swedish securities market is fairly general and FI has clarified the meaning of the law by publishing regulations and general advice. Investment banks have therefore been able to on their own term choose how to disclose conflicts of interest in their bank. When discussing self-regulation terms like corporate governance and stakeholders are often mentioned. Corporate governance is considered to improve transparency in businesses and create a sense of responsibility towards the company’s stakeholders. When it comes to conflicts of interest, this becomes a difficult task when a part of the corporate governance process is to evaluate oneself and ones own corporate ethics.
The future regulations of conflicts of interest are uncertain but it is clear that the market consider it an important issue, which should be highlighted and discussed. This essay analyses corporate governance and ethical standards and what stakeholders may require from investment banks. The conclusion presented argues that the conflicts of interests and risks that exist are a result of the flow of confidential information within the bank since they work with both the primary and secondary market. Further conflicts of interest will arise from the fact that employees can unfairly appropriate oneself this information. In order to reduce these risks Chinese walls are required in order to provide firewalls between the different departments. Apart from Chinese walls, corporate governance that promotes long-term relationships with clients will minimize the risks of conflicts and lead to greater transparency within the bank. (Less)
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author
Heide, Elisabeth LU
supervisor
organization
course
JURM01 20101
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Bankrätt
language
Swedish
id
1669859
date added to LUP
2010-09-15 10:40:45
date last changed
2010-09-15 10:51:05
@misc{1669859,
  abstract     = {Due to the recent financial turmoil we have noticed how exposed our financial situations are. Not only the financial market has been affected but also major socio-economic crises have risen as a result of the recession. Despite this, there is a willingness to take part in trading on the financial market. Considerable amount of money is involved in the securities market which makes it obvious that many of us want to take advantage of this and become participants. This has led to more investment banks establishing businesses in Sweden offering different services like corporate finance and asset management. When offering a variety of services within the same company potential conflicts of interest may arise. The conflicts considered to be most undesirable are those that hinder accurate information to become public and further prevents the development of a transparent and efficient financial market. This paper has focused on how valuable information in an investment bank can create conflicts of interest and what the direct consequences for bank customers will be.
Investment banks’ self-regulation has become an essential part in the Swedish law when it comes to conflicts of interest. The law on the Swedish securities market is fairly general and FI has clarified the meaning of the law by publishing regulations and general advice. Investment banks have therefore been able to on their own term choose how to disclose conflicts of interest in their bank. When discussing self-regulation terms like corporate governance and stakeholders are often mentioned. Corporate governance is considered to improve transparency in businesses and create a sense of responsibility towards the company’s stakeholders. When it comes to conflicts of interest, this becomes a difficult task when a part of the corporate governance process is to evaluate oneself and ones own corporate ethics.
The future regulations of conflicts of interest are uncertain but it is clear that the market consider it an important issue, which should be highlighted and discussed. This essay analyses corporate governance and ethical standards and what stakeholders may require from investment banks. The conclusion presented argues that the conflicts of interests and risks that exist are a result of the flow of confidential information within the bank since they work with both the primary and secondary market. Further conflicts of interest will arise from the fact that employees can unfairly appropriate oneself this information. In order to reduce these risks Chinese walls are required in order to provide firewalls between the different departments. Apart from Chinese walls, corporate governance that promotes long-term relationships with clients will minimize the risks of conflicts and lead to greater transparency within the bank.},
  author       = {Heide, Elisabeth},
  keyword      = {Bankrätt},
  language     = {swe},
  note         = {Student Paper},
  title        = {Intressekonflikter i Investmentbanker},
  year         = {2010},
}