Is your culture right to support the SMCR?
In the FCA’s 2017/18 Business Plan it stated “Our focus on culture and governance in financial services and its impact on individual and firms’ conduct is a priority. We will continue to promote the right cultures, behaviours and effective governance across the industry to deliver appropriate outcomes for consumers, markets and competition consistent”
Culture forms an important part in demonstrating these changes. With the embedding of the of the new Senior Managers Regime in Banking and the implementation for other regulated firms coming along in 2018 there isn’t a better time to ensure your strategy, governance and underlying culture are aligned.
The FCA wants to see progress on culture, alongside embracing the requirements of the Senior Managers and Certification regime, SMCR. They have made it clear that senior management teams will be held to account for failings in company culture. Taking time now to ensure that a strong framework is in place to satisfy the regulators will give your senior managers and their teams the confidence they need to go about their day to day duties.
The reputation (and revenues) of your business depends on your approach to culture, and conduct risk and of course, SMCR. Every week we hear of another corporate failure that has eroded the trust in the industry – better business culture has become a regulatory priority.