A report based on the findings of the survey of 500 senior financial services professionals across the United Kingdom and United States found 24% of respondents (UK: 25%, US: 23%) reported a belief that financial services professionals may need to engage in unethical or illegal conduct in order to be successful and particularly troubling, 16% of respondents (UK: 18%, US: 15%) reported that they would commit a crime-insider trading-if they could get away with it.
Labaton Sucharow's survey also revealed 39% of respondents reported that their competitors have definitely or are likely to have engaged in illegal or unethical activity in order to be successful; 30% reported their compensation or bonus plan created pressure to compromise ethical standards or violate the law; and 23% reported other pressures that may lead to unethical or illegal conduct; and
Just 30% of respondents felt their financial regulators and law enforcement authorities effectively deter, investigate and prosecute misconduct-despite these organisations new leadership, record enforcement actions and new reforms.
Jordan Thomas, partner and chair of the whistleblower representation practice at Labaton Sucharow, said: "When misconduct is common and accepted by financial services professionals, the integrity of our entire financial system is at risk. In this era of corporate scandals, we must refocus our energies on corporate ethics and encourage individuals to report wrongdoing-internally or externally."
While Labaton Sucharow's survey found that 94% of respondents (UK: 92%) would report wrongdoing given the protections and incentives, only 39% of the financial services professionals surveyed in the UK were aware of this important investor protection programme - 49% of respondents in the US were aware.
