Transforming culture

In 2018, the FCA published DP18/2: Transforming culture in financial services, to encourage discussions on culture. In it, academics, industry leaders, international regulators and change practitioners share their experiences and best practice insights, and ask further questions of the industry.

The FCA has told us they’d welcome a response from our industry to DP18/2, and we’ve set about doing that in two key ways:

1. IA Culture Forums – our first Culture Forum held in November 2018, attracted 78 firms. We held a number of panels on key topics concerning culture in our industry, and Latham & Watkins, our sponsors, presented on culture from a practical perspective. This year’s Forum is on 25 September. Members can register and find out more details here.

2. IA Culture Framework – we’re creating a flexible Culture framework that provides our industry with practical steps to consider, and questions to ask, to secure, develop, and maintain a healthy culture.


Senior Managers & Certification Regime (SM&CR) 

Culture and governance are at the heart of regulation and inextricably intertwined. And extending SM&CR is a concrete and practical example of how this is expected to work in firms. The regime is as much about changing culture as it is about accountability and certification, as the FCA’s DP18/2 paper notes:

“We do not believe there should be a one size fits all culture; we do not prescribe what any firm’s culture should be. However, we have set out minimum standards of behaviour in the form of five conduct rules, which sit at the heart of SM&CR”.

Ahead of the implementation of SM&CR for solo-regulated firms, we’ve created an ‘expert’ page on the regime for members. It will act as a staging post for current issues, a depositary for IA documents, and a signpost for useful resources produced by others. We’re also planning several briefings and training courses leading up to the 9 December implementation date, all of which you can find on our expert page.


Underpinning other areas of work

Due to the impact and influence of culture on the way an organisation operates and interacts with consumers, it also underpins much of the wider work the IA does including: