Importance of Culture in Conduct

Which regulators are rolling out culture assessments? 

• The Financial Conduct Authority (FCA) in the UK
• The Central Bank of Ireland
• The Dutch Central Bank – De Nederlandsche Bank (working on assessments for 5 years)
• The Monetary Authority of Singapore
• Australia’s Prudential regulator

How has the COVID-19 pandemic affected how regulators view how financial firms behave in the short term?

First, the effects of home working on a firm’s infrastructure has had a direct impact on team morale and mental health. For many, there has been a lack of distinction between work life and home life which led to high-levels of stress. There has also been a high level of pressure on commercial service, leading to customers becoming severely stretched under lockdown. Security has been another concern as senior managers struggle to directly supervise the activities of employees.  

How has the shift to remote working changed the way employees engage with work? 

The Banking Standards Board ran a survey on this in late 2020, six months into remote working. Employees reported that they were now happier than before with how well their bosses were supporting the health and well-being of their staff, how they were responding to concerns, and the general quality of their leadership. 

What are the four consistent themes that regulators focus on?

• Purpose
• Leadership
• Governance
• Managing employees