The FCA has today published a report of its March 2018 Transforming Culture Conference. The short report (7 pages) summarises the event and sets out next steps.
The conference was held in the week following the FCA’s publication of a collection of 28 essays (DP18/2) prepared by a range of contributors including banks, academics, trade associations, individuals, etc. The essays are intended to stimulate debate. The conference commenced with a speech from Andrew Bailey, FCA’s CEO, and was then followed by four sessions:
- What constitutes a good, healthy culture for financial services?
- What role should regulators and regulation play in managing culture?
- Remuneration and beyond – what are the most powerful motivators of behaviour?
- How can we deliver real cultural change in financial services.
The report summarises the themes which emerged from each of the sessions. From those discussions, FCA identified 4 key thematic lines of enquiry; over the next 12 months, the FCA intends to continue to engage with stakeholders and will focus on these themes and the questions.
- Psychological safety over fear:
- What role does psychological safety play in promoting healthy and inclusive cultures?
- How can this be promoted most effectively?
- Remuneration and incentives:
- What implicit behaviours are being driven by bonus cultures?
- Are there better approaches to compensation?
- What non-financial incentives can be used to motivate performance?
- Leadership and management capabilities:
- What is needed to support leaders, including middle management, to cultivate healthy cultures?
- How can these skills be better recognised as a management discipline?
- Assessing culture:
- What does effective assessment or measurement of cultural indicators look like within firms?
- How should measurement be used?
The paper invites those interested in pursuing the discussion to contact the FCA.