FCA speaks on cultural evolution

Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders to listen and for there to be a working environment where people can speak up and provide meaningful challenge.  She said culture is central to FCA’s supervisory model, and that underpins conduct and therefore business performance and confidence. This, she said, is one of the reasons the fit and proper test includes honesty, integrity and reputation.

She moved on to discuss ESG and the demands of investors that their money “does good” and discussed FCA’s drive to “clean up” sustainability classifications. And, looking through a Consumer Duty lens, said that firms can expect that at every stage of the regulatory lifecycle they can expect to be asked to show how their business model, the actions they have taken and their culture is focussed on delivering good customer outcomes.

FCA itself has undergone a cultural shift, trying to adapt to provide quicker, better, service, including through its sandboxes and regional offices.  It is also continually working on adapting to change, such as how its existing rules will govern AI, while continuing to look at the human factor with D&I and the SMCR review high on its priorities. She said FCA wants firms to take regulatory references more seriously – it has found that firms in the wholesale markets are not properly considering adverse information in regulatory references when hiring.