Culture in Financial Services has been saved
Culture in Financial Services
One year on
Regulators and supervisors continue to emphasise the importance of culture in financial services. This paper looks at the latest messages on culture from regulators globally and highlights new and emerging areas of supervisory focus.
A year ago, we issued a paper explaining how supervisors go about the complex task of assessing a firm’s culture.
Since then, there has been no let-up in the regulatory and supervisory focus on culture; it has spread across jurisdictions and been accompanied, increasingly, by a drive to introduce formal accountability regimes.
Given the continuing evolution in regulatory thinking and supervision of culture, this short update to our previous paper:
- summarises the latest messages on culture from regulators across the globe;
- sets out developments in the supervision of culture, including the global trend towards increased individual accountability; and
- highlights new and emerging areas of supervisory focus.
New and emerging areas of focus for supervisors
The reason why a firm exists and the extent to which its purpose is cognisant of, and orientated towards, the outcomes achieved for customers and the market.
|The ‘tone from above’
The behavioural examples and cultural signals being sent by an employee’s immediate manager or supervisor.
|Diversity and inclusion
The extent to which the board, senior managers and wider firm are comprised of individuals from a range of backgrounds, experiences and outlooks.
A culture that encourages staff to speak up, sharing opinions and ideas or acknowledging errors, without fear.
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