Andrew Bailey (Chief Executive – FCA) has given a speech on culture in financial institutions at the Hong Kong Monetary Authority conference for independent non-executive directors.

Mr Bailey set out his view of the respective roles of firms’ governing bodies and management and public authorities and used two case studies – concerning remuneration and governance – to illustrate the changes that are being seen.

Key points made in the speech include that:

• a firm’s culture emerges in large part from inputs that are its responsibility;
• it is for firms to ensure that their desired culture is consistent with appropriate conduct outcomes, to identify the drivers of behaviour within the firm and to control the risks that these drivers create; and
• culture change in itself is a challenge which takes time.

A copy of the speech:  http://bit.ly/2mS21AR