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Letter from Privy Council
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Schedule-Rules
Council Regulations
District Centres
Code of Conduct
Code of Practice

Letter from Privy Council

At the Court at Buckingham Palace

THE 26th DAY OF JUNE 1991

PRESENT,

THE QUEEN'S MOST EXCELLENT MAJESTY
IN COUNCIL

WHEREAS there was this day read at the Board a Report of a Committee of the Lords of Her Majesty's Most Honourable Privy Council, dated the 15th day of May 1991, in the words following, viz.:

"YOUR MAJESTY having been pleased, by Your Order of the 24th day of July 1990, to refer unto this Committee the humble Petition of The Institute of Bankers in Scotland praying for the grant of a Supplementary Charter in the name of "The Chartered Institute of Bankers in Scotland":

"THE LORDS OF THE COMMITTEE, in obedience to Your Majesty's said Order of Reference, have taken the said Petition into consideration and do this day agree humbly to report, as their opinion, to Your Majesty, that a Supplementary Charter may be granted by Your Majesty in terms of the Draft hereunto annexed."

HER MAJESTY, having taken into consideration the said Report and the Draft Supplementary Charter accompanying it, was pleased, by and with the advice of Her Privy Council, to approve thereof and to order, and it is hereby ordered, that the Right Honourable Ian Lang, one of Her Majesty's Principal Secretaries of State, do cause a Warrant to be prepared for Her Majesty's Royal Signature, for passing under the Seal appointed by the Act of Union to be used in Scotland in place of the Great Seal thereof, a Supplementary Charter in conformity with the said Draft which is hereunto annexed.

G. I. de Deney

Royal Charter

ELIZABETH THE SECOND

by the Grace of God of the United Kingdom of Great Britain and
Northern Ireland and of Our other Realms and Territories Queen, Head
of the Commonwealth, Defender of the Faith:

TO ALL TO WHOM THESE PRESENTS SHALL COME,
GREETING!

WHEREAS on the 20th day of December, in the year of our Lord One thousand nine hundred and seventy-six, We did by Royal Charter (hereinafter called "the original Charter") constitute a Body Corporate and Politic by the name of "The Institute of Bankers in Scotland-".

AND WHEREAS the said Institute has by an humble Petition represented unto Us that it is desirable for the better government of the said Institute and the furtherance of its objects that the original Charter should be revoked, except insofar as it incorporates the said Institute, and has prayed that We might be graciously pleased to grant unto the said Institute a Supplementary new Charter:

NOW, THEREFORE, KNOW YE that We, having taken the said Petition into Our Royal Consideration, and being minded to accede thereto, have, of Our especial grace, certain knowledge and mere motion, been pleased to grant and declare and do by these Presents for Us, Our Heirs and Successors, grant and declare as follows:-

1. The said Institute shall henceforth be known as "The Chartered Institute of Bankers in Scotland" (hereinafter referred to as "the Institute") and by the same name shall have perpetual succession and a Common Seal, with power to break, alter and make anew the said Seal from time to time at the will and pleasure of the Institute and by the same name shall and may sue and be sued in all Courts, and in all manner of actions and suits, and shall have power to do all other matters and things incidental or appertaining to a Body Corporate.

2. The provisions of the original Charter (except insofar as they incorporate the Institute) are hereby revoked but nothing in this revocation shall affect the legality or validity of any act, deed or thing lawfully done or executed under the provisions of the original Charter.

3. The objects for which the Institute is constituted are:

(a) to encourage the highest standards of professionalism and conduct amongst its members in the public interest;

(b) to improve and extend the knowledge and expertise of those engaged in banking and financial services;

(c) to conduct examinations and promote the continued study of banking and financial services in all their aspects and to award certificates to candidates who meet the standards laid down by the Institute;

(d) to establish links and to co-operate with other professional or educational bodies with a view to the pursuit of common objectives and to represent the banking profession both nationally and internationally;

4. In pursuance of the said objects, the Institute shall have power:

(a) to provide facilities for students and members in the study of such subjects as are relevant to banking and financial services with a view to completing the examinations prescribed by the Institute;

(b) to promote the dissemination and exchange of information on matters of professional interest through the maintenance of a library, the publishing of a journal and other books and pamphlets, the holding of conferences, meetings and seminars all in the interests of promoting the efficiency and raising the standards of members;

(d) to make gifts or contributions for national, public, educational or charitable purposes;

(e) to merge with or absorb any other body whose objects are similar to the objects of the Institute and where the interests of the banking and financial services profession would best be served by such action: provided that the exercise of the powers conferred by this paragraph shall be subject to approval by resolution of the members of the Institute in General Meeting passed by not less than three-fourths of those present, entitled to vote and voting, and to the approval of the Lords of Our Most Honourable Privy Council;

(f) to purchase, lease, rent, hold and dispose of any land and premises;

(g) to undertake, execute and perform any trusts or conditions affecting any heritable or moveable property of any description acquired by the Institute;

(h) to promote the extension of Institute interests and activities throughout Scotland and elsewhere through a regional structure in accordance with the Rules;

(i) to invest monies of the Institute in accordance with the Rules;

(j) to borrow on such terms and on such security as may be thought fit for the furtherance of the objects of the Institute;

(k) to levy fees and subscriptions in accordance with the Rules.

5. The income and property of the Institute shall be applied solely towards the promotion of its objects as set forth in this Our Charter as amended or added to in the manner hereinafter provided and no member shall have any personal claim on any of the said income or property. No part of the income or property of the Institute shall be paid or transferred directly or indirectly by way of dividend, bonus or otherwise howsoever by way of profit to its members. No member of the Council shall receive any remuneration in respect of his services as a member of the Council or as a member of any committee or sub-committee of the Council other than expenses incurred in providing such services.

6. There shall be a President, a Senior Vice-President and two or more Vice- Presidents of the Institute who shall be elected in accordance with the Rules.

7. The management and administration of the Institute, its property and affairs, shall be under the control of the Council of the Institute (hereinafter referred to as "the Council") and all the powers of the Institute shall be vested in the Council except where this Our Charter or the Rules expressly prescribe that approval is required by the Institute in General Meeting.

8. The Council shall consist of such members, with such qualifications and to be appointed or elected in such manner and to hold office for such periods and on such terms as to re-appointment and re-election and otherwise, as may be prescribed by the Rules.

9. The Institute shall have such employees and others providing a service as the Council may determine and shall pay them such salaries, pensions, expenses and other sums as may be permitted within the Rules.

10. The members of the Institute shall consist of such classes of membership as are prescribed in the Rules and shall include Fellows, Members, Associates, Certificated members,Student members and Affiliates herein collectively referred to as "members".

11. The qualifications for and the method of election to membership and the rights, privileges, obligations and conditions of membership and the manner in which the same may be determined or suspended shall be such as the Rules shall prescribe.

12. Fellows, Members and Associates shall be entitled to use after their names the following words and designatory letters:- "Fellow of the Chartered Institute of Bankers in Scotland"-F.C.I.B.S. "Member of the Chartered Institute of Bankers in Scotland"-M.C.I.B.S. "Associate of the Chartered Institute of Bankers in Scotland"-A.C.I.B.S.

13. The existing Rules of the Institute are hereby revoked and the Rules set forth in the Schedule to this Our Charter shall henceforth be the Rules of the Institute unless and until amended or replaced in accordance with the procedure hereinafter given. The Rules may from time to time be revoked, amended or added to by the Institute in General Meeting (of which meeting not less than twenty-eight clear days' notice in writing shall have been given) by resolution passed by not less than three-fourths of the members entitled to vote and voting on such resolution, provided that no such revocation, amendment or addition shall have any force or effect if it be repugnant to the laws of Scotland or to any of the provisions of this Our Charter or until the same has been submitted to and approved by the Lords of Our Most Honourable Privy Council (of which approval a certificate under the hand of the Clerk of Our said Privy Council shall be conclusive evidence).

14. The Council may from time to time make such regulations as they think fit for the purpose of carrying any Rules into effect or otherwise for regulating the affairs of the Institute and may amend or add to any such regulations provided always that no such regulations shall be in any way inconsistent with any of the provisions of this Our Charter or of the Rules.

15. The Institute in General Meeting (of which meeting not less than twenty-eight clear days' notice in writing shall have been given) may from time to time amend, revoke or add to the provisions of this Our Charter by resolution passed by not less than three-fourths of the members entitled to vote and voting on such resolution and any such revocation, amendment or addition shall, when allowed by Us, Our Heirs or Successors in Council, become effectual so that this Our Charter shall thenceforth continue and operate as though it had been originally granted and made accordingly. This provision shall apply to this Our Charter as amended in the manner aforesaid.

16. It shall be lawful for the Institute in General Meeting (of which meeting not less than twenty-eight clear days' notice in writing shall have been given) with the sanction of not less than three-fourths of the members entitled to vote and voting thereat to surrender this Our Charter subject to the sanction of Us, Our Heirs or Successors in Council and upon such terms as We or They may consider fit and to wind up or otherwise deal with the affairs of the Institute in such manner as shall be directed by such General Meeting or in default of such direction as the Council shall think expedient having due regard to the liabilities of the Institute for the time being; And if on the winding up or the dissolution of the affairs of the Institute there shall remain, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid or distributed among the members of the Institute or any of them but shall, subject to any special trusts affecting the same, be given and transferred to some association or associations having objects similar to the objects of the Institute and which shall prohibit the distribution of its or their income and property among its or their members to an extent at least as great as is imposed on the Institute under Article 5 hereof, such association or associations to be determined by the Council at or before the time of dissolution.

IN WITNESS whereof We have ordered the Seal appointed by the Treaty of Union to be kept and used in Scotland in place of the Great Seal of Scotland to be appended hereto.

GIVEN at Our Court at Westminster the Sixth day of September in the Fortieth year of Our Reign.

Schedule-Rules

Interpretation

Words used in the Rules bear the same meaning as the same words used in the Charter."The Charter" means the Charter of the Institute granted in the year 1976 as amended by the Supplemental Charter granted in 1991 to which these rules are annexed.

"Chief Executive" means the employee appointed by the Council to be responsible for the management of the Institute under the direction of the Council.

"Member" means a person in the Member category of Membership, whilst "member" means a member of the Institute in any category.

Headings are shown for convenience only and shall not affect the meaning.

Words importing the singular shall include the plural and vice versa; and words importing the masculine gender shall include the feminine and vice versa, unless the context otherwise requires

MEMBERSHIP

1. Membership of the Institute shall be open to employees and former employees of organisations providing banking or financial services and which are recognised for this purpose by the Council.

2. The Institute shall consist of voting and non-voting members elected or admitted by the Council as follows:

(1) Voting members

(a) Fellows who shall be persons elected by the Council from among those

(i) who are Members or Associates of at least 10 years standing.

(ii) who hold a University degree (or equivalent qualification) accepted by the council for this purpose;

provided that candidates under both (i) and (ii) above shall be considered by the Council to have made a significant contribution to banking, or to the objects of the Institute.

(b) Members shall be elected by the Council from those who have passed Stage Ill of the examinations of the Institute.

(c) Associates shall be elected by the Council from those who have passed Stages I and II of the examinations of the Institute or such other examinations, of at least equivalent standard, as may be prescribed by the Council.

(2) Non-Voting members

(a) Student members shall be admitted by the Council from those who have presented acceptable qualifications for entry to the examinations of the Institute.

(b) Students who are awarded the Certificate in Financial Services shall be entitled to describe themselves as Certificated members of the Institute.

(c) Affiliates shall be admitted by the Council from those who do not qualify under any of the foregoing categories of membership but support the objects of the Institute.

3. Fellows (FCIBS) and Members (MCIBS) who participate in and annually complete the Continuing Professional Development Programme of the Institute shall, for so long as they continue to do so, be entitled to use the designation 'Chartered Banker'

DISTRICT CENTRES

4. The regional structure of the Institute shall consist of such District Centres as shall be determined by the Council in accordance with Rule 5(e).

COUNCIL

5. (1) The Council shall consist of not less than l5 nor more than 35 persons as follows:

(a) the President, the Senior Vice-President, and not more than 3 Vice-Presidents ex officio who shall be elected in accordance with Rule 5 from among the Council Members elected or appointed under (b) and (c) below;

(b) not less than 8 voting members elected by the Institute in General Meeting; and

(c) six District Centre representatives to be elected at the District Centres Annual Conference by each of the following Banks:-

Bank of Scotland
The Royal Bank of Scotland plc
Clydesdale Bank PLC
TSB Bank Scotland plc

(2) The number of elected members shall always exceed the number of ex-officio and appointed members.

(3) Elected members shall hold office for three years from the date of election and shall be eligible for re-election.

(4)Appointed members shall hold office for one year from the date of the Annual General Meeting following the date of appointment and shall be eligible for re-appointment.

(5)Certificates of appointment for each Council member appointed under (c) above shall be sent by the Chief Executive or Secretary of the appointing Bank or by the Chairman of the District Centre, as appropriate, to the Chief Executive by the 15th March each year.

(6)Any vacancy on the Council arising for whatever reason before the expiry of the term of office may be filled by the Council by co-option of a successor whose tenure shall subsist until the end of the period during which the vacating member would have held office.

6. Powers of Council

In addition to any powers and duties conferred on the Council by the Charter or elsewhere in these Rules, the Council shall in particular have power:

(a) to determine the content of the syllabus for the examinations of the Institute, to have full responsibility for and ultimate control over those examinations, including the power to grant exemptions from parts of the examinations on educational grounds; and to make regulations in pursuance of these powers;

(b) to appoint examiners and fix their remuneration;

(d) to decide on the admission or re-admission of members;

(e) subject to the approval of the members in General Meeting, to authorise the formation or dissolution of District Centres;

(f) to make provision in respect of the Institute's obligations under any EC Directive;

(g) to appoint from its number such Committees as are required for the conduct of business, and to delegate to such Committees such powers as it considers appropriate, including the power to co-opt individuals and to appoint Sub-Committees which would report to such Committees; provided that the Convener of each Committee shall be appointed by the Council and shall act as Chairman;

(h) to revoke any delegation made under (g) above;

(i)) to make, amend, add to or revoke any Council regulations relating to its own procedures, the regulations applicable to members, the control and conduct of members and any other regulations relating to the administration of the Institute in accordance with the Charter.

OFFICE BEARERS AND EMPLOYEES

7. President, Senior Vice-President and Vice-Presidents

At each Annual General Meeting there shall be elected a President, a Senior Vice-President and two or more Vice-Presidents, all of whom shall be Fellows of the Institute and members of the Council. Those elected shall hold office until the close of the next Annual General Meeting after that at which they were elected and shall be eligible for re-election.

8. Nominations

All nominations for election as President, Senior Vice-President, VicePresident and member of the Council shall be signed by two proposers who are either Fellows, Members or Associates of the Institute. Any vacancy on the Council arising for whatever reason before the expiry of the term of office may be filled by the Council by co-option of a successor whose tenure shall subsist until the end of the period during which the vacating member would have held office.

9. Employees

The Council shall appoint a Chief Executive and such other employees and agents of the Institute as it may consider necessary. It shall fix such terms and conditions of employment as it may consider appropriate. The Council's functions under this Rule in respect of staff other than the Chief Executive may be delegated.

10. Meetings of the Institute

The Meetings of the Institute shall be as follows:

(a) Annual General Meeting

(b) Special General Meeting

(d) Committee Meeting

11. Annual General Meeting

The Annual General Meeting shall be held on a date in June in each year to be determined by the Council. The business of the Annual General Meeting shall include the submission of the Annual Report and Audited Statement of Accounts for the previous financial year, the election of Office Bearers and members of Council when appropriate, the appointment of auditors for the ensuing year and any other business competent to be dealt with at a General Meeting,

12. Special General Meeting

The Council may at any time call a Special Meeting of the Institute to consider any question that may arise; and it shall be bound to do so within thirty days after receiving a requisition signed by not less than fifty members who are either Fellows, Members or Associates of the Institute, specifying the business to be transacted.

13. Notice

Not less than 14 days clear notice shall be given in writing of a General Meeting and a notice convening the Meeting shall state the nature of the business to be transacted. It shall be sent to all Fellows, Members, Associates, Certificated members, Student members and Affiliates.

When any Notice is sent by post in terms of these Rules it shall be deemed to have been received by the person to whom it is addressed on the third day following the date of posting.

14. Chairman

The Chairman of a General Meeting shall be the President, or in his absence the Senior Vice-President, or in his absence one of the Vice-Presidents, or in their absence, a member of the Council to be chosen by those present at the Meeting.

15 Quorum

The quorum for a General Meeting shall be fifteen voting members present in person. In the event of a quorum not being present within half an hour after the time appointed for the Meeting, it shall stand adjourned to such time as the voting members present shall determine. At least seven days' notice in writing of such adjourned Meetings shall be given and for such purpose notice shall be deemed to have been given on the third day following the posting of such notice.

16. Voting

(1) Except where otherwise provided in the Charter or these Rules, all questions brought before General Meetings of the Institute shall be determined by a majority of those voting members present and voting by a show of hands unless a poll is demanded either by the Chairman or by not less than ten voting members present at the Meeting. Unless a poll is duly demanded, a declaration by the Chairman as to the result of the vote by a show of hands shall be final.

(2) If a poll is duly demanded, it shall be conducted in such manner (including the use of voting papers) as the Chairman may direct, and the Chairman may adjourn the meeting to some other place and time for the purpose of declaring the result of the poll, and the result shall be deemed to be the decision of the meeting at which the poll was demanded.

(3) Every voting member not attending a General Meeting shall be entitled to appoint another voting member as his Proxy for the purpose of any General Meeting and in respect of any or all resolutions tabled for any General Meeting, provided that a Proxy Form, a copy of which shall be distributed to each voting member with the notice of the relevant meeting, shall have been lodged with the Chief Executive at least two days before the meeting in question. The Proxy Form shall be in such terms as the Council may from time to time determine.

(4) Proxies shall not be used where a vote is taken by a show of hands. In respect of a poll, a Proxy holder shall have one personal vote and one additional vote for each voting member for whom he holds a Proxy in respect of the resolution before the meeting. In the event of an equality of votes, whether on a show of hands or a poll, the Chairman shall have a second and casting vote.

(5) Student members, Certificated members, and Affiliates may attend and speak at General meetings but shall not be entitled to vote.

17. Council Meeting

Seven days' notice of a Meeting of the Council shall be sent to each member of the Council and such notice shall contain a statement of the business to be transacted at such Meetings. Subject to Rule 24(a) at all Meetings the President, or in his absence the Senior Vice-President, or in his absence one of the Vice-Presidents, or in their absence, a member of the Council to be chosen by those present at the Meeting, shall be Chairman and seven members shall constitute a quorum. Except where otherwise provided in the Charter or these Rules all questions brought before the Council shall be decided by a majority of those present and voting. In the event of an equality of votes the Chairman shall have a casting as well as a deliberative vote.

18. Committee Meeting

The Convener of each Committee or the Chief Executive of the Institute may call a Meeting and in the ordinary course the Convener shall be Chairman. At all Meetings four members shall constitute a quorum and all questions brought before the Committee shall be decided by a simple majority. In the event of an equality of votes the Chairman shall have a casting as well as a deliberative vote.

Any Committee appointed by the Council shall in the exercise of its powers conform to any instructions given by the Council. In all other respects it shall regulate its own procedures and shall have power to appoint sub-committees where necessary.

19. Minutes

Minutes shall be kept of all resolutions and proceedings of General Meetings of the Institute, Meetings of the Council, and Meetings of Committees, and every Minute signed by the Chairman of the Meeting to which it relates, or by the Chairman of the subsequent Meeting, shall be sufficient evidence of any fact stated therein.

FINANCE

20. (a) The Council shall have complete control of all the assets and liabilities of the Institute and shall exercise that control in promoting and protecting the objects of the Institute by such means as it may consider suitable.

(b) The Chief Executive shall be responsible for keeping proper accounts and records.

(c) All monies of the Institute not immediately required for the purposes of the Institute shall be placed on deposit with a Bank, Building Society, Public Authority or such other organisation in the United Kingdom as authorised by the Council and which includes the acceptance of such deposits as part of its normal business. Where monies are not required in the short term by the Institute or where a prize fund is involved the Council may authorise other investments.

(d) The accounts of the Institute shall be made up annually as at the 28th day of February or such other date as the Council may decide and, having been audited by the auditor appointed under the following Rule, shall be submitted for approval at the subsequent Annual General Meeting.

21. Auditor

The auditor shall be qualified to act as an auditor in accordance with the Companies Acts and shall be appointed annually by the members at the Annual General Meeting. His report shall be read before the Institute in General Meeting and shall be open to inspection by any member. The auditor shall be eligible for re-appointment. If a vacancy for an auditor should occur between two General Meetings the Council may appoint an auditor to the vacancy. The Council shall have authority to fix the auditor's remuneration.

DISCIPLINE

22. Preliminary Screening

Any complaint regarding the conduct of a member shall be referred in the first instance to the Chief Executive who, if satisfied that the matter involves only a minor breach of the regulations, may either admonish the member concerned or determine that no further action shall be taken. Otherwise he or she shall refer the complaint to an Investigating Committee appointed under the following Rule.

23. Investigating Committee

(a) Following the referral of a complaint under the previous Rule, an Investigating Committee shall be appointed by the Council from among its members consisting of not less than three nor more than five members, of whom three shall form a quorum,

(b) Subject to any directions from or Regulations made by the Council, and to these Rules, the Investigating Committee shall regulate its own procedure, and shall have power to seek information from any source.

(c) The member against whom the complaint has been made shall be notified in writing of the nature of the complaint, of the date on which the matter is to be considered by the Investigating Committee, and of his or her right to be represented, to speak, to call or cross-examine witnesses at the hearing, and to submit evidence.

(d) The Investigating Committee, having heard the case may determine that:-

(i) no further action be taken; or

(ii) the member concerned should be admonished; or

(iii) the member may have been guilty of unprofessional or unacceptable conduct as defined in Council Regulations, and the case be referred to a Disciplinary Committee appointed under the following Rule.

24. Disciplinary Committee

(a) Following the referral of a case under the previous Rule, a Disciplinary Committee shall be appointed by the Council from amongst its members (other than those who have served on the Investigating Committee which has heard the same case) consisting of not less than three nor more than five members, of whom three shall form a quorum.

(b) The provisions of Rule 22(b) and (c) above shall apply, mutatis mutandis, to the Disciplinary Committee.

(i) no further action be taken; or

(ii) the member concerned be admonished; or

(iii) in a case where the complaint is in respect of misconduct in the Institute examinations by a member taking examinations that any passes in current or previous diets of examination be cancelled; or

(iv) the member concerned be suspended or expelled from membership of the Institute.

25. Appeal

(a) Any member notified by the Disciplinary Committee of his or her proposed suspension, or expulsion from membership, or cancellation of examination passes, may appeal to the Council by writing to the Chief Executive within 21 days of receipt of the notification (which shall be deemed to have been received two days after posting) and stating the grounds of appeal which shall not thereafter be amended except with the consent of the Council. No member of the Investigating Committee or the Disciplinary Committee involved in the case shall participate in the Council's deliberations. For the purpose of hearing the appeal the Council Meeting, specially convened for that purpose, shall be chaired by a lawyer who is not a member of the Institute. As soon as practicable the Chief Executive shall notify the member of the time and place fixed for the hearing of the appeal. The member shall be given a reasonable opportunity to be heard and may be represented by Counsel or a solicitor at the hearing. The Institute may also instruct Counsel or a solicitor to act on its behalf during an appeal. The Council may proceed in the absence of the member provided it is satisfied that notice of the hearing was properly served. The Council shall, upon the request of the individual, hear the appeal in public except in circumstances where the European Convention on Human Rights permits the Press and Public to be excluded from all or part of the hearing.

(b) On any appeal the Council may by simple majority vote, confirm, vary or rescind any determination of the Disciplinary Committee.

OTHER MATTERS

26. Subscription and Fees

(a) Every member shall be required to pay an annual subscription appropriate to his class of membership. The subscription rates and the period applicable shall be such as may from time to time be prescribed by regulations made by the Council and approved by the Institute in General Meeting.

(b) Examination and other fees shall be fixed by the Council.

27. Resignation

Any member of the Institute may resign by giving notice in writing to the Chief Executive, provided that any member whose notice of resignation is not received by the last day of May in any year shall remain liable for the subscription payable for that membership year.

28. Non-Payment of Subscription

Any member who has failed to pay the subscription within 6 months of the annual date on which the subscription fails due shall cease to be a member and his name shall be removed from the Roll of Members of the Institute.

29. Restoration of Membership

The Council shall have power at its sole discretion to reinstate to membership any person who has resigned or whose membership has ceased through non-payment of subscriptions, provided that such member makes payment of the subscription due on the date of re-admission together with such proportion of any unpaid subscriptions due as the Council may deem appropriate in each particular case.

30. Indemnity

The members of the Council and officers of the Institute shall be indemnified by the Institute from all losses and expenses incurred by them in or about the discharge of their respective duties, except in consequence of wilful default or deceit, provided they have acted in good faith for the benefit of the Institute. No member of the Council or officer of the Institute shall be liable for the actions of any other member of the Council or Officer of the Institute.

Council Regulations

Words used in these regulations shall have the same meanings assigned to them as are applicable under the "Interpretation" clause in the Rules.

1. Procedure for Election or Admission

Voting Members

(a) Fellows-Nominations for election as Fellows shall be submitted to the Chief Executive of the Institute by the authorised representatives of banks or other financial institutions, by the Chairmen of District Centre Committees, or by individual members of the Council and in each case the nomination must be seconded by two existing Fellows. Nominations shall be considered by the Finance & General Purposes Committee which shall submit to the Council such applications as it commends for the election of Fellows. Such nominations shall be notified to the Council at the meeting preceding that at which election is to be considered. Voting shall be by ballot or otherwise as the Council may determine and no person shall be elected unless three-fourths of those present at the meeting have voted in favour. Those who have been nominated for election in terms of Rule 2 shall then be invited to become Fellows.

(b) Members and (c) Associates

All applications for Membership or Associateship shall have satisfied the conditions specified by the Charter and Rules in such a manner as the Council shall require. Lists of nominations of the two categories shall be prepared by the Chief Executive and signed by two Fellows or Associates of the Institute for submission to the Council. Voting shall be by ballot or otherwise as the Council may determine and no person shall be elected unless a majority of those present and voting at the meeting at which the individual is nominated shall have voted in favour of the election.

Non-Voting Members

(d) Certificated members (e) Student Members and (f) Affiliates

All applications for Certificated , Student and Affiliate membership shall have satisfied the conditions specified by the Charter and Rules in such a manner as the Council shall require. Lists of nominations for Certificated Membership shall be submitted by the Chief Executive to the Council for their approval. Voting shall be by ballot or otherwise as the Council may determine and no person shall be elected unless a majority of those present and voting at the meeting at which the individual is nominated shall have voted in favour of the election.

2. Examinations

The Council shall have full responsibility for and ultimate control over the examinations of the Institute including the power to make, alter, amend or revoke the rules appertaining to the examinations. The Council also has authority to grant exemptions from parts of the examinations on educational grounds.

The Chief Executive shall keep records of candidates and their results.

Delegated authority for the syllabus and method of study will be exercised through an Education Committee with the support and guidance of the Chief Executive of the Institute and the Director of Studies. The Education Committee shall report the results of the examinations, the progress of the students and any other relevant matter to the Council throughout the year.

Details of the examinations and related matters are shown in the examination syllabus and tuition guide, a copy of which is available from the Institute office.

3. Post Qualifying Education

It is the responsibility of the Council through the Education Committee to ensure that the constant changes in financial services are reflected in the range of courses and conferences available and the further qualifications necessary to ensure that members are adequately equipped to deal with the continuous and systematic additions to financial knowledge, information and expertise.

4. Graduation, Awards, Prizes, Scholarships-Secondments

The Council may use the funds belonging to or held by the Institute to award certificates, prizes, scholarships or such other suitable forms of recognition to individuals who have passed or distinguished themselves in the examinations of the Institute.

The Council has overall responsibility for the administration and allocation of prizes including the ultimate decision on how the awards are granted and presented.

5. Codes

Members should abide by the basic principles laid down in the Code of Conduct and the Code of Practice.

The Code of Conduct relates to the standards required of a member regarding personal behaviour and integrity, while the Code of Practice deals with the quality of performance and professionalism. The two are complementary and deal with different aspects of a member's duties and responsibilities. Further details and explanatory notes regarding both the Code of Conduct and Code of Practice are given on pages 25 to 32.

It is not possible to give definitive and permanent guidance on the many Acts of Parliament and other Government Regulations, or on the Rules of the different Regulatory bodies with which the banks, and other financial institutions,have to comply, or on the EC Directives, Codes and official edicts from International, National and Regional Authorities principally because the rules and more particularly their interpretation may change from time to time.

However, it is incumbent on members to keep abreast of all relevant regulations and current developments and in appropriate circumstances to seek guidance from the appropriate authority within their own organisation before taking any action.

No person who has ceased to be a member (a) is entitled to hold out that he or she has any connection with the Institute or (b) mav use designatory letters relating to the Institute.

6. Code of Conduct-Basic Principles

Professional Conduct

It is incumbent on all members to uphold the highest standards of honesty and integrity in all their dealings.

Professional Performance

Members should equip themselves to carry out their duties, with proper regard to the technical and professional standards expected of a qualified banker, and to keep abreast of current developments to ensure that their particular expertise is constantly up-to-date.

Confidentiality and Trust

The concept of banking implies trust of the highest possible order and confidentiality is of paramount importance in the professional conduct of a member.

Personal Standards

Members should conduct themselves in an entirely honest and honourable manner and their business dealings should always be fair minded and inspire confidence, They are expected to show the highest standards of ethics and commitment in all their dealings and to observe and to comply with all relevant laws and regulations of countries in which they conduct business. They must also show due regard for the public interest and for the legal rights of third parties and it is forbidden for any information, however acquired, of an unpublished, price sensitive or confidential nature, to be used to their own advantage.

A banking student guilty of misconduct in the Institute examinations is regarded as being in breach of this Code of Conduct.

Reputation of the Institute

Membership of the Institute is a privilege which carries duties and responsibilities. It is incumbent on members to uphold the highest traditions of the Institute and to act with complete integrity towards the Institute, its members and the members of other professions with whom they may come in contact in a professional capacity.

7. Code of Practice-Basic Principles

Duties and Obligations

It is incumbent on all members to equip themselves, both practically and theoretically, to achieve the highest possible standard of professional competence. The individual has an obligation to conduct himself or herself in a manner consistent with the good name of the profession and the Institute and in compliance with all legal and other necessary requirements.

Performance

The performance of an individual may be judged by an employer, a colleague, by the employers' customers and by the public. It is a member's responsibility to make every effort to take into account the particular interests of the different groups.

Relationships and Security

The attitude to an employer, to an employer's customers and clients, to colleagues and to the wider public should reflect tact, fair mindedness, helpfulness and the utmost courtesy. Acting with less than complete trust and confidentiality is not acceptable.

Professionalism

The need for an individual to look ahead and to plan for the future is an essential feature of membership of the Institute. It is not sufficient to qualify as a member in accordance with certain laid down criteria and thereafter to regard oneself as adequately equipped for the foreseeable future. Change is a permanent feature of banking and this requires to be reflected in the approach of both the Institute and its members. Continuous and systematic additions to financial knowledge, information and expertise is an essential requirement for members of the Institute throughout their careers.

8. Discipline

By way of further explanation of Rule 22 (d) (iii) the following criteria apply:-

Unprofessional conduct includes any failure in a material respect by the individual concerned to comply with the standards of behaviour, integrity, competence or professional judgement which other members might reasonably expect having regard to any advice or guidance given to the individual or published by the Institute. Unacceptable conduct means conduct which is not sufficiently serious to amount to unprofessional conduct but which the Committee deems as likely to have an adverse effect upon the reputation of the member concerned or the Institute. Any act or admission or behaviour of a member which has caused or contributed to such conduct could also be held liable under these provisions.

9. Property

Subject to the provisions of the Charter and the Rules ' the Council have full control over premises occupied and property owned by the Institute.

The Council have authority to purchase, to take on lease or in exchange or 'hire or in any other way acquire any heritable or movable property as it sees fit.

10. Library

Subject to such conditions as the Council may from time to time direct the Library shall be open to all members during such hours as may be determined by the Council. The Council shall prepare and cause to be placed in the library the regulations of the library and shall have the power to vary these regulations from time to time as it thinks fit. Such regulations shall be binding on all members.

The Council may permit persons other than members to use the library under such conditions as it may lay down.

11. Publications

A magazine is produced on a regular basis and other text books, papers and publications are also prepared as the Council may determine. The availability of these papers to members and non-members shall be decided by the Council.

12. Charities

The Council may establish, administer and contribute to any charitable purpose which promotes any of the objects of the Institute or which has objects similar to those of the Institute.

District Centres

13. Model Rules Governing the Establishment and Management of District Centres

(a) Establishment

District Centres may be established with the approval of the Council. Because of the widely varying circumstances between one District and another-and particularly with regard to size-the Rules may be modified to meet the needs of a particular District.

Any amendments to these Rules requires the approval of the Council.

(b) Name and Constitution

The name of the organisation shall be "The Chartered Institute of Bankers in Scotland ... District Centre", and its functions shall be regulated by the Charter and Rules of the Institute.

The objects of the Centre are:

(1) to provide a local organisation for students and members of the Institute and to assist the Council in promoting the objects of the Institute;

(2) to arrange a programme of activities for its members and to consult with other Districts under the aegis of the officials in the Institute office for this purpose;

(3) to provide a means whereby the views of District members can be made known to the Council of the Institute Council through the District Centres Annual Conference and through District Centre representation on Council

(d) Membership

Membership of the District Centre shall be open to all employees and pensioners of financial organisations approved by the District Committee and who reside, either temporarily or permanently, or work within the area served by the Centre.

Management of District Centre

(e) Committee

The Management of a District Centre shall be vested in a Committee drawn from and elected by the voting and non-voting members of the Institute within the area served by the District Centre and shall consist of not less than six nor more than fifteen of whom four shall form a quorum. Each of the Scottish Banks shall if possible be represented on the Committee.

(f) Election

Nominations for election to the District Committee, signed by two Fellows, Members, Associates, Student Members or Affiliates of the Institute, must be lodged with the District Secretary at least fourteen days before the Annual General Meeting of the District Centre. Members of the District Committee shall retire after serving a three year period of office but shall be eligible for re-election. After serving two consecutive three year periods of office a Committee Member must retire but will be available for re-election after a lapse of one year.

(g) Office Bearers

At its first meeting after the Annual General Meeting of the District Centre the District Committee shall appoint from its number a Chairman, a Secretary and a Treasurer. The Committee shall also appoint a member to serve on the Council. Each individual shall hold office for one year and shall, in the normal course, be eligible for re-appointment. Voting shall be determined by a majority of the Committee members present.

(h) Vacancies

The District Committee shall have power to co-opt members in any category of the Institute to fill any casual vacancies which may arise, but a member of Committee so co-opted shall remain in office only for so long as his predecessor would have held office.

(i) Minutes

The proceedings of the District Centre shall be recorded by the Secretary in books kept for the purpose.

Meetings

(j) Meetings

Ordinary Meetings of the District Centre shall be held at such times and places as the District Committee shall decide.

(k) Annual General Meeting

The Annual General Meeting of the District Centre shall be held not later than the 12th day of March in each year, to receive the Report of the District Committee and the financial statement for the preceding session; to elect members of the District Committee and an Auditor(s) for the ensuing year; and to transact any other business. Should the Chairman not be present, the meeting may appoint a member of the District Committee to act as Chairman. Ten shall form a quorum. A copy of the Report and Financial Statement of the District Centre shall, after approval at the Annual General Meeting of the District Centre, be sent to the Chief Executive of the Institute not later than 15th March.

(l) Special Meetings

By resolution of the District Committee, or upon a requisition of ten or more members of the District Centre who are members of the Institute in any category, the District Secretary shall convene a Special Meeting. Notice of such meetings specifying the business to be transacted shall be issued within fourteen days from the passing of such resolution or the receipt of such requisition and meetings shall be held not less than seven and within fourteen days after the issue of such notice. Should the Chairman not be present, the meeting may appoint a member of the District Committee to act as Chairman. Ten shall form a quorum.

Funds

(m) Subscriptions

Any annual subscription fixed by the District Committee shall be paid on or before 30 November each year.

(n) Institute Contributions

The Committee of the District Centre shall, on or before 15th November each year, forward to the Chief Executive of the Institute a statement, certified by the Chairman and the Secretary, showing the membership of the District Centre as at the previous 28th February and an estimate of income and expenditure for the current year to 28th February. The Council of the Institute shall then make a contribution to the District Centre at such rate as they shall determine. The Council shall have power to withhold contributions to any District Centre if its affairs are not conducted to their satisfaction.

(o) Control

Control of the Funds shall be vested in the District Committees, and no money shall be paid by the District Treasurer unless authorised by the District Committee.

(p) Accounts

The District Treasurer shall keep proper accounts, which shall be made up to the 28th day of February of each year, Such accounts, which shall be audited by a member of the Institute who is not on the District Committee, shall be laid before the Annual General Meeting of the District Centre with a Report and Financial Statement by the District Committee and a copy sent to the Chief Executive.

Code of Conduct

Background and Introduction

The need for members of a professional organisation to maintain high standards has never been greater and, while there are statutory requirements regarding the personal behaviour of professionals, it is felt that there is also a requirement for an authoritative statement from the Institute which offers guidance on how members should conduct themselves. While all these pronouncements are not hard and fast rules, the basic principles require to be observed by all members. The expanded comments are by way of further explanation and elucidation with a view to encouraging members to reach a higher standard than the minimum requirements. The provisions of a Code are not directly enforceable through the courts but they can of course have significant consequences in a legal situation. A Code of Conduct can include explanatory material and arguments and is basically designed to assist the member in upholding the dignity, reputation and good standing of himself and of his profession.

A further reason for producing a Code of Conduct is that the Royal Charter requires the observance of strict rules of conduct as a condition of membership and the names of certain Chartered bodies-of which our Institute is one-is included in the list of organisations named by the Department of Trade and Industry as suitable for inclusion in the European Community Directive for the mutual recognition of professional qualifications. Within that Directive there is also an obligation to ensure that members respect their Rules of professional conduct.

Finally, this Code is not designed to substitute for Rules laid down by the Banks and other organisations as employers. This Code does not repeat the instructions contained in the various procedural manuals that are currently operational in different organisations. Rather it contains statements of basic principles, together with explanatory notes and comments.

Members of the Institute owe duties to their employer, to their employer's customers, to the profession itself, to other members of that profession and to themselves. There will be occasions when there could be a conflict ofinterest and the Institute is ready at all times to give guidance on the application of this Code of Conduct. Any member requiring clarification or amplification of his or her conduct should seek the guidance of the Institute through the Chief Executive.

It is also important to mention that the Council has authority to set up Investigating and Disciplinary Committees to consider the case of any member who may be accused of impropriety of conduct and to consider what action should be taken, including the possible expulsion of the individual from membership of the Institute. Full details of the operation of these Committees are given in the Rules.

It should be stated that any guidance cannot be all embracing and it is up to members to use their common sense and discretion in applying the spirit of the Code. In the interests of brevity only matters of fundamental significance are covered in the Code but there are many other circumstances in which the professional integrity and conduct of a member must be a factor of considerable importance in dealing with certain situations. Because of the nature of banking, confidentiality and mutual trust are of the utmost importance at all times but so also is the need to conform to the many other rules and regulations both statutory and non-statutory which are in existence-many of which have been introduced in the recent past. It is also the case that recent legislation-particularly in the financial area-could affect the actions of members in their professional conduct and this must always be a factor to be borne in mind.

From what has been said it is clearly a Code which members should endeavour to adhere to and it is designed with the intention of meeting the highest possible standards attainable, and not simply to conform to a level sufficient to meet acceptable basic requirements of the banking profession. As experience is gained in the operation of the Code it will be the intention to evaluate its worth, identify areas where it can be improved, encourage members to make full use of the principles laid down and generally make it a more effective and relevant document.

Basic Principles

1. Professional Conduct

It is incumbent on all members to uphold the highest standards of honesty and integrity in all their dealings.

2. Professional Performance

3. Confidentiality and Trust

The concept of banking implies trust of the highest possible order and confidentiality is of paramount importance in the professional conduct of a member.

4. Personal Standards

Members should conduct themselves in an entirely honest and honourable manner and their business dealings should always be fair minded and inspire confidence. They are expected to show the highest standards of ethics and commitment in all their dealings and to observe and comply with all relevant laws and regulations of countries in which they conduct business. They must also show due regard for the public interest and for the legal rights of third parties and it is forbidden for any information, however acquired, of an unpublished, price sensitive, or confidential nature, to be used to personal advantage.

A banking student guilty of misconduct in the Institute examinations is regarded as being in breach of this Code of Conduct.

5. Reputation of the Institute

Definitions and Terms Used

"He" can be substituted with "she" and "his" can be substituted with "her". "Himself' can be substituted with "herself'.

They" "Themselves" applies to male and female.

Employer-means any person, firm, company or other organisation employing the member in a paid capacity, whether full or part-time.

Employer's Customer-means any person or persons, group, firm, company, organisation or other identifiable body with whom an employer is engaged in a business capacity.

Notes for Guidance

Five basic principles cover the Institute's Code of Conduct and it is clearly in the best interests of the Institute and its members for individuals to adhere to these standards of personal and corporate behaviour to ensure that the banking profession retains the confidence and trust of the public at large.

By way of further explanation of the Code, and in order to be a little more specific with regard to the five principles, some additional comments are made:-

Professional Conduct

Since it is accepted that Rules cannot easily be written to deal with moral and ethical questions, personal integrity and the attitude of the individual is of paramount importance when matters of this kind arise. It must be remembered that the actions of one member can have a disproportionate effect on the reputation of a professional organisation such as the Institute. Personal integrity which implies adherence to generally accepted principles of honesty and fair-mindedness should determine a member's behaviour. It should never be forgotten that the ethical conduct of banking and its reputation depends to a large extent on the approach and attitude of individual bankers at all levels. Members are expected to bring the same high standard of conduct in their social life as is demanded in their professional activities when these interests coincide. An individual acting in a professional capacity should always conduct himself or herself with courtesy and consideration. The maintenance of standards is a prime responsibility of the Council and it is a matter for them to decide how to proceed when the conduct of a member brings the name of the Institute into disrepute.

Conflict between an individual's private interests and those of an employer should be avoided. Where this situation does arise the member should raise the problem with the employer in order that the matter can be satisfactorily resolved. Any acceptance of gifts, services or rewards which could affect the independent judgement of a member is highly dangerous and, in .his connection, the assessment and judgement of others, and in particular colleagues, may be a better yardstick to use than the individual's own subjective judgement.

Colleagues should not be involved in any situations where they could be compromised in their impartiality.

Professional Performance

The performance of a professional implies more than simply doing a job: it places an obligation on the individual to acquire all the knowledge and skills necessary to carry out the assigtunent to the highest standard possible. Equally members must not lay claims to being an expert in areas with which they are not familiar. Advice should only be offered where there is sufficient mastery of the subject to be generally regarded as professionally competent. Professionalism in this context is a combination of knowledge, experience, common sense and sound judgement. Members must also be aware of the changes that are constantly taking place, not only within the profession, but also the implications and effects of legal and other constraints that are being applied from a variety of sources outside the industry. Decisions taken must be based not only on traditional criteria but with these wider implications in mind. Where necessary, it may be appropriate to advise clients and customers to seek independent professional advice.

Confidentiality and Trust

Since one of the basic tenets on which banking has been founded is confidentiality of information, it cannot be emphasised enough that information from whatever source which has been acquired in the course of professional work must not be disclosed other than in exceptional circumstances. While this section clearly covers information regarding the employer's customers, it should also be remembered that it covers the privacy of the employer, of fellow employees and any other individual or grouping where the information acquired has been obtained in confidence and is not generally available elsewhere. Considerable care must be exercised to ensure that any communication by word of mouth, by writing, by electronic means or any other form of communication is treated with the utmost secrecy and sensitivity.

The exceptional circumstances under which information may be disclosed includes the following, although this is by no means exhaustive:

where consent has been obtained from the client or customer; where there is a public duty; where there is a legal duty.

While there are other circumstances, the utmost care and discretion must be taken when considering disclosure and it is strongly recommended that legal advice be sought.

Personal Standards

Because banking is founded on mutual trust and public confidence, all persons engaged in the business must be conscious of the need to maintain the highest standards of personal behaviour in order to safeguard that trust and confidence. Personal integrity is a quality which cannot be created or preserved by written Rules alone: ultimately the ethical conduct of banking depends upon the propriety and behaviour of those engaged as professionals in the industry. For that reason a member should avoid any form of dubious business practice. He or she should not use, nor appear to use, confidential information to his or her own personal advantage or for the advantage of a third party. The individual's relationship with the employer is covered by the employment contract and the member should recognise that a primary loyalty and responsibility is owed to the employer. Any decisions taken on behalf of the employer must not be influenced by anything other than the employer's best interests. Having said that, the member also has a duty to other individuals and groups and not least to himself or herself and that is why it is necessary to reiterate that many questions of ethics, behaviour and morals cannot be easily answered and codified without significant thought, appraisal and sound judgement.

Reputation of the Institute

Since the Institute has received a Royal Charter, and has a long and honourable history it must be the aim of each member to maintain, improve and enhance its reputation. This can only be done if the necessary effort is made and to this end the Council, the District Centres and the Chief Executive and staff do their utmost to present and extend its influence in the most favourable light. The task is not for a selected few, but falls on each and every member and to that extent this Code exhorts all members to be constantly on the alert to take every opportunity to advance and promote the image of the Institute in the best possible manner. By following the basic principles of this Code it is hoped that the reputation and integrity and good standing of the banking profession continues to be acknowledged by the community at large.

Code of Practice

Background and Introduction

With constant change being a feature of business life and advances in technology adding to the complexities of professional competence, it is felt that there is a need to put on record some guidelines to assist members in the performance of their duties. A Code of Practice deals with the manner in which an individual exercises professional competence, as compared with a Code of Conduct which deals with a member's behaviour. The two Codes are complementary.

A Code could be regarded as the formalisation of many years of experience into a list of tried and tested procedures which have proved their worth over a period of time. Although it may appear to be stating the obvious, and to a large extent to be common sense, this does not necessarily detract from its value and particularly is this applicable to new members of the Institute. It differs from legislation in that it also offers guidance rather than simply imposing statutory controls and there is a degree of flexibility which allows latitude in its practical application. While a Code of Practice has no legal form, it clearly can have considerable significance in certain special situations and it has the advantage that explanatory material and firm opinions can be expressed in the interests of assisting members to take a view. For all these reasons it is considered important that the Institute should state in unequivocal terms what its rules of good Practice are and the standards which it is endeavouring to achieve.

There is a variety of ways in which we can express the essential features and the order of the items does not necessarily indicate their importance. What must be said is that a departure from any of the principles in this Code should not be necessary and indeed would require justification. The twin themes of the Code are "Standards" and "Responsibilities".

As professional bankers and financial services practitioners it is essential that Institute members familiarise themselves with the details of any Codes of practice and procedures laid down by their employers. While the Institute's Code relates to the individual in the exercise of professional competence, in many instances the Institute's Code and a Bank's Code have the same broad aims and objectives and for that reason they can be read together. The desire to provide a highly efficient, fair minded, evenly balanced and professionally competent service to the community at large is paramount in both Codes.

Finally, it is worth emphasising that the spirit of this Code is just as important as the word and the text should be viewed as a whole and not used in isolation to justify a particular course of action. Any repetition in the text of the Code of Practice and the Code of Conduct is quite intentional and designed in the interests of clarification and emphasis and to avoid any dubiety.

Terminology

"He" can be substituted with "she" and "his" can be substituted with "her". "Himself" can be substituted with "herself". "They" "Themselves" applies to male and female. Employer-means any person, firm, company or other organisation employing the member in a paid capacity, whether full or part-time. Employer's Customer-means any person or persons, group, firm, company, organisation or other identifiable body with whom an employer is engaged in a business capacity.

Basic Principles

1. Duties and Obligations

2. Performance

The performance of an individual may be judged by an employer, by a colleague, by the employer's customers and by the public. It is a member's responsibility to make every effort to satisfy all these different groups.

3. Relationships and Security

The attitude to an employer, to an employer's customers and clients, to colleagues and to the wider public should reflect tact, fair mindedness, helpfulness and the utmost courtesy. Any suggestion of less than complete trust and confidentiality is not acceptable.

4. Professionalism

The need for an individual to look ahead and to plan for the future is an essential feature of membership of the Institute. It is not sufficient to qualify as a member in accordance with certain laid down criteria and thereafter to regard oneself as adequately equipped for the foreseeable future. Constant and rapid change is a permanent feature of banking and this requires to be reflected in the approach of both the Institute and its members. Continuous and systematic additions to financial knowledge, information and expertise is an essential requirement for members of the Institute in the years ahead.

Explanatory Notes

Duties and Obligations

While it is not possible to identify every area or circumstance where the provisions of this Code can be applied it is implicit in its production that the highest standards of performance are expected. Because it is in the form of a Code it can not only insist on a basic level of performance but it can also encourage members to aspire to a higher level.

While the main thrust is to establish sound basic principles there is also a need to spell out the dangers of less than satisfactory working practices.

The principal responsibility and loyalty of a member must be to the employer but the need to recognise a customer's rights must always be in the mind of the even-handed professional. In many cases the imbalance between the customer and the sheer size of the employer with regard to resources, knowledge, expertise and influence must be recognised if the customer is not to be put at an unfair disadvantage. Having said that the customer also has obligations and responsibilities which must be exercised in a reasonable and acceptable manner.

Performance

The performance expected by an Employer and the measure of that performance is spelled out by Employers in a variety of publications within an organisation. This criterion is regarded as part of the terms and conditions of the total contract of an individual and is implicitly acknowledged by the member in acceptance of the employment. Any references to these instructions and measurements are therefore a matter between the Employer and the Employee. However there is an additional responsibility on the part of each member to abide by standards laid down by the Institute. While these are in the main incorporated within an employer's set of rules members should not lose sight of the fact that high standards of honesty, integrity, fairmindedness and objectivity are an essential requisite of membership of the Institute.

Relationships and Security

Integrity in relationships with those to whom professional services are being rendered as well as confidence and the utmost secrecy, are part of the foundations on which banking has been built. A member must be careful to ensure that the legal requirements are followed when advice is being sought by, and advice is being given to, a customer. A member must also be aware when it would be inappropriate to proffer any advice. These rules must be scrupulously observed.

Professionalism

It should be said that a Code of Practice is unlike a fixed set of Rules in that it should be capable of adaptation in its interpretation without the need to change the text. The basic principles do not alter although the working practices may change.

The Code is concerned with the professionalism of bankers. All members have a responsibility to a variety of individuals and groups and it is a measure of the calibre of the professional that a member can satisfy the needs of all of them and at the same time maintain a fair and equitable balance.