80% of involved in corruption this century are political class

According to the report of the Judiciary General Council in 2013 there were 1,661 causes of political corruption in Spain: money laundering, bribery, prevarication or influence peddling. These causes were grouped in 302 macro-processes, as operation Malaya, plot Gürtel, false Andalusia unemployment subsidies, Caja Madrid, Case Pujol or Punic operation. They added to more than 1,900 imputed, at least 170 condemned.  Most have not been to prison, because prison was imposed but did not require entry, ended in disability or fine or has pending appeal. In fact, 80% of those involved in corruption in this century are of political class and political party-related ç, according to El Mundo newspaper. Cases mostly affect PP and PSOE, but also CiU, UM or Canarian Coalition. There are also cases among unions and employer’s associations.

The Inspectors of the Treasury Inspectors Organization point out that the cases are discovered by chance or denunciation. Once discovered, the money is not returned.

The Congress thus approved a law to reinforce financial control of political parties. It consolidates a 40% cut in public aid to political parties -applied in recent years- and 20% reduction in subsidies for electoral propaganda. In fact, the Government of Partido Popular (PP) presented a national democratic regeneration plan that includes 70 measures: transparency Law, reform of Penal Code, Statute of High office with prohibition to participate with more than 10% in companies linked to the administration; political parties economic activity act, with prohibition of debt condonations, limit on subsidies, accountability to the Court of Auditors, extension of limitation periods and incompatibility of corruption with party membership.

Attacking the origin of evil is missed

This is very good, but it looks very focused on the “outward look.” It misses putting the finger on the sore and attacking the origin of evil. What is the internal disciplinary process of political parties and institutions? Anyone knows a political party conduct compliance director? A discipline committee? Training, educations and continuous ethics and professional conduct review? This is where cost for those who violate legal and/or ethical norms must begin, where first people interested in prestige protection are the very members of each institution.

As in politics, in investment and finance temptation exists and it can be very lucrative not to comply with the rules. But after years of study and effort it can mean the end of a professional career and, of course, end up in jail.

CFA Institute disciplinary process: integrity and prestige

An example in this regard is the disciplinary process of CFA Institute, a non-profit professional organization whose mission is to lead the world’s investment profession under ¡ highest standards of ethics, training and professional excellence. It administers the certification Chartered Financial Analyst (CFA). Its code of ethics and standards of professional conduct are applied worldwide and comprise more than 120,000 members and 200,000 candidates in 90 countries. Each year members must renew certification, requiring a minimum of hours of study that include compulsory subjects related to professional ethics.

CFA Institute disciplinary process It is based on protection of integrity and prestige. It begins with follow-up of behaviors that may be violating the code of ethics or rules of conduct, based on complaints, internal initiatives and even doubts expressed by the member itself regarding his/her own conduct. The review of the activity or conduct is carried out by the same, certified professionals, who evaluate the colleague to ensure he/she meets the standards.

It’s a form of self-regulation. The process tries to ensure fairness and consistency. A disciplinary committee, which may include members from around the world, from a variety of activities -academics, asset managers, analysts, regulators and consultants-carry out the process according to established rules. In addition, members of disciplinary committees receive regular training. There are even calls for new training members, with simulations. In addition, an executive team works the review of process standards and helps determine whether additional training or education is needed. An electronic management system has even been adopted whereby documents are distributed electronically, without need for paper. The professional being investigated could plead and oppose or show agreement. The result may be a private reprimand, penalty, temporary suspension or revocation of the certificate. The investigation may be filed, but when concludes in disciplinary action carries out detailed descriptions of misconduct and is made public, including a list of persons under penalty. In addition, the cases become part of a library, which serves as help and guide for the future. Less than 1% of members and candidates are involved in a disciplinary process,

José María Serrano-Pubul, CFA, CAd

https://www.directivosyempresas.com/firmas/corrupcion-en-espana-todo-empieza-por-dentro/