Showing posts with label guideline. Show all posts
Showing posts with label guideline. Show all posts

New Ethical Guidelines



How do we handle the ethical dilemmas of research on adults who can't give their informed consent? In a recent article in the journal Bioethics, ethicist Stefan Eriksson proposes a new approach to the dilemma of including dementia patients and others with limited decision making capabilities in research.

There is a need for research on persons with impaired decision making, for example dementia patients. Without their participation we stand to loose knowledge necessary for future treatments that can benefit these groups. There are ethical guidelines to guard their interests, but they are somewhat ill-guided, says Stefan Eriksson, associate professor of research ethics at the Centre for Research Ethics & Bioethics (CRB).

"We are sometimes led to believe that these guidelines conclusively state that research on these groups is permitted only in exceptional cases, but they don't," he says.

According to Stefan Eriksson, today's guidelines are often arbitrary. On one hand, research that benefits some groups, for example one's own age group, is allowed. On the other hand, research that benefits other groups, for example one's own children or community is not allowed. The previous will or interests expressed by person has little or no weight in these situations.

Another problem that Stefan Eriksson highlights is that some ethical standards simply make no sense for these groups. For example, the idea of a 'minimal risk standard' builds on the idea that there is something ordinary or routine about the risks we take in our daily lives. Such risks should then be acceptable in research as well. This kind of reasoning doesn't work for someone with for example Alzheimer's. The same is true for 'very slight impact' and 'routine examination', notions that doesn't translate well to a person with dementia who might very well react in a very different way than a person without dementia.

"The guidelines that researchers act according to allows for vulnerable persons to be exploited," says Stefan Eriksson.

Instead of trying to translate the norm to those who fall outside it, we need to address the real issues at stake and re-write the guidelines that apply today Stefan Eriksson says. We need to rid them of notions of exceptionality, minimal risk and group beneficence. We also need to monitor this kind of research more closely and provide legal obligations to compensate for any injuries suffered.

He concludes: "But we also need to consider other issues, such as how surrogate decision-makes can be of use to these persons and how to find ways to estimate a dementia patient's capacity for autonomy. We need to continue the debate and do more research on the ethics of research on persons with limited decision-making capacity."

Guideline to Clarify


Since most credit institutions (including banks) provide collateral agent services as well as acting as underwriters, the regulation stipulated in the Financial Supervision Authority's latest advisory guideline entitled Generally Recognized Professional Requirements upon Rendering Investment Services and Non-Core Services will introduce some new rules of play.
The guideline mainly aims to specify the principles that are applicable to such services. The guideline, which will enter into force on September 1 2010, is built on three pillars:

- The obligations of the collateral agent;
- The role of the underwriter; and
- Matters related to conflicts of interest.

As there are no specific regulations or relevant judicial practice on this issue, the obligations and liabilities of collateral agents are unclear. Therefore, the guideline will stipulate general principles, such as equal treatment of warrantees and the monitoring of the wellbeing of collateral. It is important to emphasize the supporting purpose of the guideline to regulate situations and provide principles for those cases where contracts lack relevant rules. This means that in case of dispute, the first point of reference will be the contract executed with the collateral agent. Therefore, it is important to stipulate the collateral agent's obligations and role in as much detail as possible and monitor the wellbeing and maintenance of the collateral.
The question of the underwriter's responsibilities has also come up for debate. Usually, the underwriter does not assume responsibility for investors; however, the guideline will include the principle that the tender documentation must be balanced (i.e., it must reflect all opportunities, as well as risks). This means that the underwriter's role is not limited to the use of sales channels; it will also be expected to identify and explain risks.

Should the underwriter detect any risks, it must draw the issuer's attention to the need to include the relevant aspect in the documentation. Furthermore, the underwriter is expected to be more competent in establishing and determining the risks than the issuer.

With reference to conflicts of interest, it is important to realize that:

- The underwriter is under due diligence and loyalty obligations to the issuer;
- The collateral agent is under due diligence and loyalty obligations to the party for
- Which it is acting as a collateral agent (i.e., the guaranteed party or warrantee); and
- The same applies to the receiver and forwarder of the order with regard to its clients (investors) and to the investment consultant with regard to its clients.

If one person renders more than one of these services, a conflict of interest between different functions is assumed. This means that in subsequent supervisory proceedings, the party rendering the service must be able to justify to the Financial Supervision Authority the efficiency of the methods applied. Proving the separation of functions requires the effective management of conflicts of interest, and therefore the institution rendering the services (e.g. the bank) should feel no pressure, since generally it will be seen as 'one person'.

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