Sustainable business practices
The departments of the “Chief Risk Officer” organisational unit support all VP Bank employees on matters involving compliance with statutory and regulatory provisions. Group Compliance, Group Legal Services and Group Risk identify risks and suggest various solutions that comply with these provisions so that such risks can be minimised and systematically monitored. Internal rules are also established and controls are implemented to ensure compliance with all provisions.
VP Bank pursues long-term goals and adopts a conscientious approach in the risk management area. A comprehensive description of risk management is presented in the “Risk management of VP Bank Group” section.
Fostering good conduct
VP Bank promotes customer proximity and trust through voluntary commitments to ethical principles in its business practices, and creates a solid foundation for its operating principles.
VP Bank works actively to combat bribery, which is the basis for corruption, the granting or receiving of advantages and financial crimes in the banking business. This objective is accomplished on the one hand through on-going training for client advisors and on the other through internal monitoring measures.
The Code of Conduct, which is well established at VP Bank, and the Bank’s values and management principles underpin VP Bank’s binding commitment to ethically correct management and serve as a guide for good conduct. Violations of the Code of Conduct or of VP Bank rules are penalised through uncompromising disciplinary measures and consequences as authorised by labour law. The Code of Conduct was revised in 2019 and all employees received e-training on it. Violations of the Code of Conduct were reported across the Group in 2020; all violations were sanctioned.
VP Bank also has rules covering key topics such as banking secrecy, data protection, conflicts of interest, insider information and data integrity, as well as areas such as equal opportunities and social media. The respective provisions are communicated to all employees through ongoing training initiatives.
Monitoring of conflicts of interest in conjunction with third-party fees and commissions and secondary employment will be further expanded and embedded in the system throughout the Group in 2021.
Conflicts of interest and anti-corruption measures
Conflicts of interest can arise between the Bank and clients, between individual clients, between the Bank, its governing bodies, employees and clients, and within VP Bank Group / between VP Bank Group companies and other financial services companies. Such conflicts may involve traditional banking transactions as well as other business opportunities or purposes.
A comprehensive set of rules and supporting processes (e.g. with respect to benefits) exists to maintain objectivity and prevent conflicts of interest.
VP Bank acts in the best interests of its clients. To that end, a strict division of tasks exists between the asset management, investment advisory, trading, financial analysis, financing, risk monitoring and clearing departments, and Chinese walls prevent the sharing of sensitive information in this regard.
VP Bank is unreservedly committed to the clean money strategy of the Liechtenstein banking centre and therefore fully implements the corresponding binding provisions of the Liechtenstein Bankers Association. Through their conduct and activities, VP Bank employees do not support any unauthorised transactions that would serve to reduce taxes or duties or conceal tax-related information.
In addition, VP Bank observes all national and international tax regulatory requirements such as QI, FATCA and the Automatic Exchange of Information (AEOI).