In certain jurisdictions, financial services industry bodies provide a number of services designed to address the issue of rolling bad apples, including but not limited to:

• Providing a centralised process for screening prospective employees of financial services institutions;

• Delivering training and offering qualifications on competency, conduct and professionalism;

• Developing and managing industry codes of conduct;

• Managing databases/registers of financial services professionals; and

• In a few instances, enforcing breaches of industry codes and relevant professional standards.

Whilst these industry bodies are formally and functionally independent from the official sector, the exercise of some of their functions referred to above is sometimes codified in legislation, regulation and/or memoranda of understanding with supervisory approaches. The Netherlands is the main example of a jurisdiction where institutions and the official sector co-source employee screening, monitoring, training and even the enforcement of professional conduct standards to membership organisations.

1. Dutch Securities Institute

The Dutch Securities Institute (DSI) was founded in 1999 by the financial industry in the Netherlands and has memoranda of understanding and agreements with the two supervisory bodies in the Netherlands: the Financial Markets Authority (AFM) and the De Nederlandsche Bank (DNB). The DSI promotes and monitors the integrity and reliability of financial services by: