The FCA has held its first Enforcement Conference in London on the theme of culture and governance.

Martin Wheatley, chief executive, FCA, gave a speech on “The importance of culture to industry”, and highlighted two priorities for the future:

1. regulatory activity remaining focused on future standards as much as past indiscretions, and
2. The continued importance of business leaders questioning the appropriateness of products and strategies for clients’ long-term interests.

Tracey McDermott, director of enforcement and financial crime, FCA, gave a speech entitled “Learning the lessons of the past as an industry”, in which Ms McDermott recognised

1. That it is not straightforward to change a way of thinking that has existed for years if not decades, and that has focused on revenue over other considerations.

Ms McDermott suggested the answer lies in

1.  Making everyone involved in financial services better aware of their responsibilities and the wider impact their work has on individuals and societies.

In this context Ms McDermott pointed to the new senior managers’ regime for banks, which will require firms to certify their own staff, as one way to force banks to take responsibility for the fitness and propriety of those they employ.

Copies of the speeches by:

Martin Wheatley = http://bit.ly/1FLb5sB

Tracey McDermott = http://bit.ly/1rTqwqs