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UNI Finance sees the need for a profound reform and strengthening of the regulatory and supervisory systems for the finance industry. While the European Commission has not yet formulated concrete proposals on the necessary changes, its recent communication for the spring council and the report by the so-called Larosière Group lead in the right direction.



“For the trade unions a major omission in the proposals is that the central role played by employees in the finance industry is not taken into account sufficiently”, said Oliver Roethig, Head of UNI Finance. “Their experience and knowledge is essential to prevent a recurrence of a similar crisis effectively. They are best acquainted with internal operating systems and actual practices at all levels as well as with the impact of these on the broader risk situation in a company and the sector as a whole.”



“Finance employees should therefore have the opportunity to provide supervisory authorities at national, European and global level with information and assessments of risk-sensitive practices and thereby contribute to an effective early warning system. We need a complementary bottom-up approach.”



At the core of the reform should be the development of a new long-term orientated, risk-conscious business model. The underlying principle should be that operating practices in companies ensure the long-term sustainability and profitability of a company as well as limit systemic risks in the finance industry.



To this end, UNI Finance demands the following:



1. Internal operating procedures and practices should be transparent. The way employees are motivated and constrained in performing their jobs must be clear (remuneration, incentives, skills, and working conditions).



2. Structured dialogue should be established between unions representing financial workers and financial supervisory agencies at all levels to address operating procedures, work practices affecting companies’ risk management and the stability of the financial system



3. Charters on responsible sale of financial products should be developed by each financial institution and to be agreed between management, unions and other stakeholders.



“As customers have the right to good advice, so finance workers have the right to give good advice,” said Roethig. "Supervisors and regulators need to ensure both."



For the text of the submission, see "Related Files".



Further contributions to the EU were given on:

• remuneration in the financial services sector
• directors' remuneration
• retail investment products
• financial inclusion

UNI Finance's statement and key issues paper on finanical reform can be found here:

"http://www.uniglobalunion.org/Apps/iportal.nsf/pages/20090324_flp3En"