The UK FCA's 6th Conduct Question
Roger Miles
25 years: Behavoural science & conduct
We discussed the FCA’s 5 conduct questions in an earlier video. Given the change of stance at the regulator a 6th question is being introduced that will focus on purposeful culture, diversity and inclusion. Join Roger as he discusses how we got to this point and as he unveils the question
We discussed the FCA’s 5 conduct questions in an earlier video. Given the change of stance at the regulator a 6th question is being introduced that will focus on purposeful culture, diversity and inclusion. Join Roger as he discusses how we got to this point and as he unveils the question
The UK FCA's 6th Conduct Question
9 mins 52 secs
Regulators globally are now looking for evidence that a firm has a culture where everyone feels safe to “speak up”. The direction of conduct and culture controls had started to shift even before the pandemic threw firms into strange new ways of working. With better governance guidelines now aligning with the best new practices, there's a positive outlook for conduct-regulated firms.
Key learning objectives:
Identify what the regulators mean by ‘diverse and inclusive’
Understand the governance themes that the regulators are interested in
What do regulators mean by diverse and inclusive?
Regulators mean they’re looking for
- Evidence that each firm has a culture where everyone feels free to “speak up”
- Staffs feeling ok to start a conversation with any colleague, based on the conduct questions
What defines a purposeful firm?
- Having a purpose beyond just making money
- Having a healthy culture that’s diverse, safe and inclusive
- Diversifying risks and providing affordable financial support by advancing credit
- Sustainable custodianship and stewardship of assets
- Channelling and guiding the investment and funding with which our economy is built
- Vital infrastructure, facilitating each economic transaction through the payments system
- Delivering long-term sustainable benefits for employees, consumers and shareholders
- Supporting markets, and mediating between savers and borrowers
What are the simplified conduct questions to start a conversation amongst the team?
1. What do I do to check no-one’s behaving badly in our business?
2. How do we encourage each employee to feel and be responsible for good conduct?
3. How does my firm give each employee support, to help drive out bad behaviour?
4. How do our senior managers oversee conduct and consider consequences of their decisions?
5. Am I happy to call out anything I see that undermines our efforts for good conduct?
6. How can we include a wider range of ideas and experiences around the table?
Roger Miles
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