Understanding Culture and Ethics for the Investment Management Industry

The FCA will draw conclusions about a firm’s culture as part of its risk assessment. In the most serious of cases, the regulator has the power to withdraw a firm’s authorisation to operate, or to prevent an individual from working in Financial Services, so there are few more pressing priorities than strong corporate culture.

Culture is one of the regulator’s key themes at the moment. As FCA’s CEO, Andrew Bailey has said:

“Positive culture, as I will call it, goes right to the heart of what firms and their staff are, what values they represent and, the positive ethical customs”

Positioned and set correctly, an organisation’s prevailing culture – which should include its approach to reinforcing individual accountability and managing conduct risk – make a massive contribution to generating revenue and enhancing brand reputation. In the last 15 years, large-scale conduct-related scandals arising largely from ‘poor’ organisational cultures have eroded stakeholders’ trust in the Financial Services industry. As a result most of the regulatory priorities are now shaped around the need for ’healthy’ business culture, underpinned by individual accountability.

It’s down to your firm to create a culture that minimises conduct risk and promotes the overriding objective of ‘doing the right things’. But changing corporate culture is difficult and the stakes of getting it wrong are high.

Key Learning Objectives

• Better analyse your firm’s culture and how it’s influencing conduct risk
• Gain a firmer grasp of the regulator’s position
• Understand the connection between ‘healthy ‘ culture and the Senior Management and Certification Regime (SMCR) and how the regulator is trying to change the industry
• Recognise the driving forces of different business cultures
• Spot the positive and negative indicators the regulator is looking out for
• Understand which communication styles work in which culture
• Identify the elements that stabilise (and destabilise) cultures

09:30 Analysing business cultures

• Research into business cultures
• What sort of culture is yours?
• What drives culture in organisations?
• Sub-cultures - the tensions they may create and how they may be managed

10:30 Evolving your business culture

• Why change? And how to change
• Leadership and rewards
• Internal and external communication
• Stabilising and destabilising cultures – the key factors

11:00 Coffee Break

11:15 Positive and negative indicators: the regulator’s perspective

• What is the regulator’s definition of ‘Culture’
• How do firms know whether they are meeting the regulatory expectations and requirements?
• What are the measures of success?
• What evidence might the regulator be looking for and what questions might be asked?
• What does ‘good’ look like from the regulator’s perspective
• Joining the dots - how culture ties into conduct risk and SMCR?

12:15 Embedding a code of ethics in the organisation’s culture

• The contents of a typical code of ethics
• How are codes developed, introduced and discussed?
• Codes and business culture – ensuring alignment
• Identifying harmonious and discordant behaviour
• Practical tips

13:00 Course close and networking lunch

• A sandwich lunch will be provided and an opportunity for you to network with the trainer and other delegates

Richard Galley has a proven track record in regulatory compliance and risk management, both as a practitioner and as a trainer. Before becoming Director of Learning at FSTP, Richard was an independent consultant for 7 years following nearly 25 years working for Bupa in a variety of senior management roles including 10 years as Head of Compliance and Policy Development. In that time Richard was closely involved in the development of a number of key regulatory initiatives much of which included "tone from the top", a critical universal feature of culture within organisations.

IA Member £375.00 +VAT
Non-Member £450.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

Any cancellation must be made in writing. For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable. No refund is given for a cancellation made 14 days or less prior to the commencement of a course. Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.