FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and how it has been rolling the programme out across other sectors of wholesale financial markets.
Its latest report explains that FCA has hosted roundtables with 18 wholesale banks, at which it carried out a short survey and a longer discussion of wider topics. Key messages from the session include:
- the positive effects of conduct and culture change programmes;
- skills in identifying conduct risk could still improve – particularly in the evolving Work from Home model;
- firms could do better on psychological safety for staff at all levels speaking up;
- remuneration strategies could work even better, although focusing on the “how” as well as the “what” is a positive development; and
- CEOs and line managers need to help explain the differences between corporate purpose and principles, and how they apply to individual jobs