FCA paper on transforming culture in financial services
The paper is comprised of 28 essays by industry leaders and academics concerning the concept of a “good culture”, the role of regulation and regulators, how firms might go beyond incentives for good behaviour and how to change behaviour.
The FCA considers that unhealthy cultures in financial services have been a key cause of major conduct failings. The introduction to the essays states that its regulatory focus is on what it considers to be the four main drivers of culture – firm purpose, leadership, approach to reward and people management, and governance arrangements.
The discussion paper offers actionable insights for financial services practitioners to consider how they can effect change in their organisations, including:
- Using behavioural science to guide incentives and cultural change;
- Looking beyond the role of leadership in effecting change;
- Applying strategic focus to the continuous process for adapting culture;
- Fostering environments of trust to encourage openness and learning.
The discussion paper can be viewed at: bit.ly/2DlqF1X
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The FCA has issued the first of a series of consultation publications which form part of its mission.