The Financial Conduct Authority (FCA) has today published a discussion paper on transforming culture in financial services which presents views from academics and industry thought leaders.
The paper is a set of essays that discuss what a good culture might look like, the role of regulation and regulators, how firms might go beyond incentives and how to change behaviour for the better.
Culture and governance is a priority for the FCA and we have a strong focus on the role of the individual as well as the firm. The FCA has considered the role of leaders, incentives and capabilities, and governance of decision making. The introduction of the Senior Managers and Certification Regime (SM&CR) is an example of this; it sets minimum standards for the behaviour of financial services staff and aims to promote a culture where senior managers take responsibility for identifying where harm might occur and take action to prevent it.
The SM&CR creates a formal link between the behaviour of individuals and the conduct of the firm.
To support members with preparations for SM&CR, the BVRLA will be providing a series of updates, resources and learning programmes in Q2 of this year. More to come on that in due course.