UESTION 1 In view of extensive regulation, people in finance might assume that law is the only guide (If its legal, then its morally okay). A certain amount of self-regulation is necessary, not as a replacement for legal regulation, but as a supplement for areas which the law cannot easily reach and as an ideal for rising above the law. Explain why the law is not enough. QUESTION 2 Immanuel Kant developed a very influential ethical theory that seeks to answers the question what besides consequences could be relevant to the morality of an action? Explain the ethical theory proponed by Kant. QUESTION 3 Briefly explain what is meant by the equity/efficiency trade off. QUESTION 4 Explain the duties of a fiduciary and the duties of an agent. QUESTION 5 Approaches to dealing with ethical problems in finance range from: establishment of ethical codes for staff of financial institutions; fit and proper criteria for industry personnel; introduction of corporate governance rules. Using the Guidelines for Business Conduct for Scotiabank, state how the guidelines define conflict of interest and give examples of conflicts of interest contained in the guidelines. QUESTION 6 Financial regulation prescribes that persons who are shareholders, senior managers and key employees of financial services institutions must be fit and proper persons. a) Define what is meant by fit and proper b) Explain the objectives of having this fit and proper criteria. QUESTION 7 Corporate governance problems and peculiarities of small developing countries are reflected in several characteristics. State these characteristics. QUESTION 8. Distinguish between the rules-based approach and principles-based approach to corporate governance. QUESTION 9 The Basel Committee on Banking Supervision Guidelines Corporate governance principles for banks states that: In order to promote a sound corporate culture, the board should reinforce the tone at the top. Describe the steps that a Board should take to reinforce the tone at the top.