Culture in financial services: less conversation more action
Published 07 April 2025
Introduction
The FCA’s latest publication on the importance of culture, a speech from COO Emily Shepperd, argues that culture directly drives conduct and decision-making, which in turn impacts consumers, markets, and the economy. Shepperd says that when investigating regulatory failures they find, “The same root cause: failings in culture and governance.”
Indeed, many of the recent fines and failings highlighted by the FCA, as well as warnings issued to individuals at the top of organisations such as Crispin Odey and Terry Smith all have this common thread.
Despite the admission that failings in culture and governance are root causes, between 2019-2024 only 12% of Section 166 reviews commissioned by the FCA involved a culture element. This prompts the question as to whether the regulator is taking sufficient action on culture and if the industry requires a mindset shift.
