G in ESG: FCA to examine firms' governance to improve culture
30/11/2022
The culture of financial services firms is often depicted in movies, and perceived by some of the public, as either
- ‘Dull and Jurassic or
- Reckless and scandalous.
Senior managers need to do more to improve the culture at their firms so the depiction and perception of financial services can improve, the FCA’s chief operating officer has said.
Emily Shepperd, who is also the regulator’s director of authorisations, spoke to members of the financial services industry at the City and Financial Global’s 8th Annual Culture and Conduct Forum
She said that
- The culture of financial services firms is often depicted in movies, and perceived by some of the public, as either ‘dull and Jurassic or reckless and scandalous.’
She added
- The FCA is looking closely at firms’ governance, and that senior managers need to get the culture right to improve the image of financial services in the UK and abroad.
- ‘We are looking closely at what support firms offer to employees to improve their culture so that it boosts the conduct of their business or function,’
- ‘The FCA expects senior leaders to nurture healthy cultures in the firms they lead. Cultures that are purposeful.
- That have sound controls and good governance. Where employees feel psychologically safe to speak up and challenge.
- Where remuneration does not encourage irresponsible behaviour that can ultimately damage the business and wider markets.
- ‘Our role as a regulator is to lead by example and we do care about culture as it informs conduct and that is what we regulate.’
Shepperd said that
- The FCA’s incoming consumer duty rules will help firms improve their culture.
The rules, first published in July, will bring in an outcomes-focused approach to regulation.
They will require firms – advisers and fund/product providers – to ensure the products and services they offer represent value for money and are understood by consumers.
The consumer duty comes into force next June for advisers and platforms, and in mid-2024 for closed-book products.
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.