HSBC 2015 Annual Report Download - page 42

Selected initiatives
Our conduct
Operating with high standards of conduct
is central to our long-term success. We have
processes, policies and a culture designed
to ensure fair outcomes for customers and
protect the integrity of financial markets.
Updated RBWM
new product
review process
to assess against
fair exchange of
value criteria
Figures in diamonds refer to pillars in our Conduct Framework
Revised
incentives
structure in
RBWM and
CMB to remove
formulaic link
with sales
volumes, and
instead focus on
customer needs
Established
Board-level
Conduct & Values
Committee to
promote and
oversee activities
across the Group
Introduced values
assessment in
recruitment for
senior roles
across the Group
to help ensure
candidates reflect
our standards
of behaviour
Defined global
policy in RBWM
on potentially
vulnerable
customers to help
us identify and
appropriately
serve those
whose
circumstances
could impair their
decision making
Introduced a
global conduct
framework to
define and guide
initiatives across
five areas
of activity
Integrated
our GB&M
surveillance
teams and tested
new technologies
to strengthen our
capabilities to
detect suspicious
trading activity
and misconduct
We have undertaken a series of
initiatives in recent years to strengthen
and develop our measures to encourage
and ensure good conduct.
In 2014, we established a Conduct
& Values Committee to provide Board
oversight of our multiple efforts to raise
standards of conduct and to embed the
behavioural values we stand for.
Later that year, we introduced our
global Conduct Framework, which sets
out five pillars on which our conduct
is based, and links each to specific
behaviours. This guides activities to
strengthen our business, and increases
our understanding and awareness of
how the decisions we make affect
customers and other stakeholders.
Improving conduct
continuously
Raising standards further
in 2015
We completed a broad programme
of activities during the year to further
raise standards of conduct, and help
ensure their effectiveness across
the Group.
Key developments included introducing
the assessment of values in recruitment,
embedding customer perspective in
decision making, refining the value
proposition of products and improving
the reporting of misconduct.
Selected initiatives and the pillars
they relate to are shown along the
timeline below.
For further details of the work
of the Conduct & Values Committee,
see page 272.
2012 to 2014 2015
5251324
Strategic Report
HSBC HOLDINGS PLC
40