The Last Word
Without Confidence, There Are No Financial Markets

No matter how many laws are written and enacted to regulate industries, it all comes down to the fact that if you can't have confidence in people, there will always be people who can circumvent the law.

The sociologist Adam Seligman makes an interesting distinction between trust and confidence. According to Seligman, confidence is what you have when you know what to expect in a situation; trust is what you need when you do not know what to expect.

Most business transactions occur in the context of confidence rather than trust; i.e., if a plumber does a faulty repair job, he (or she) and I know I can contact the Better Business Bureau, refuse to pay my bill, etc. In other words, if I do not know you well enough to trust you, I at least have confidence in the system to make things right if need be.

As business leaders, we need to take responsibility for restoring the confidence of the American people and the international investment community.

Wharton has delivered quality custom education programs for the financial services industry for close to 40 years. Three years ago, together with the NASD, we launched the first certification program for securities professionals and regulators. In a time of diminishing trust, this certificate program has been instrumental in helping financial services professionals and regulators work better together for the benefit of investors.

Robert E. Mittelstaedt, Jr.
Vice Dean and Director
Wharton Executive Education

• Wharton Executive Education
  
  
• The Wharton School

This month's articles:

• Thought Leaders I: Restoring Confidence in the Market
  The first certification program for financial services professionals, compliance officers, and regulators.
  
  
• In the Classroom: Pension Fund and Investment Management
  Professor Jeff Jaffe offers some perspective for personal investors.
  
  
• Advanced Management Program: Becoming the "Financial Conscience" of the Company
  Erich Ammann, CFO of The Schindler Group, talks about the changing role of the chief financial officer.
  
  
• Thought Leaders II: Changing Marketing Models for Financial Services
  Professor Jagmohan Raju examines what factors require companies to rethink their strategies and organizations.
  
  
• New Program Profile: Getting Pricing Right the First Time
  A new program offers strategies for getting pricing right the first time.
  
  
• The Last Word: Without Confidence, There Are No Financial Markets
  All the regulations in the world can't create trust.
  
  
• Education à la Carte: Insight + Application = Wharton Knowledge
  Wharton's got the right formula.