Global Trustee and Fiduciary Services News and Views Issue 50

Global Trustee and Fiduciary Services News & Views | Issue 50 | 2018 37 CULTURE AND CONDUCT — A GLOBAL PERSPECTIVE. . . My assessment of recent history is that there has not been a case of a major prudential or conduct failing in a firm which did not have among its root causes a failure of culture as manifested in governance, remuneration, risk management or tone from the top.” Culture in financial services — a regulator’s perspective’ Speech by Andrew Bailey, Prudential Regulatory Authority, May 2016. There is no such thing as an ideal organisational culture and, as a firm’s culture is influenced by many different factors, we cannot prescribe what it should be; nor do we believe that every firm should have the same culture.” ‘Culture in financial institutions: its everywhere and nowhere’ Speech by Andrew Bailey, Chief Executive of the Financial Conduct Authority, March 2017. NEW YORK SEC Chairman Jay Clayton — June 2018 — Observations on Culture at Financial Institutions and the SEC New York FRB President John C. Williams — June 2018 — Now is the Time for Banking Culture Reform EUROPEAN UNION MiFID II — Powers to remove board members Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders HONG KONG Securities and Futures Commission — Manager-in-charge regime SINGAPORE Monetary Authority of Singapore — Guidelines proposed in April 2018 to strengthen individual accountability of senior managers AUSTRALIA One of the five key challenges of the ASIC Corporate Plan 2017-2021 — Culture and conduct — aligning conduct in a market-based system with investor and consumer trust and confidence 1 July 2018 — BEAR goes live IRELAND In December 2017 the Central Bank of Ireland recommended reforms to improve accountability should be based on the UK’s SM&CR UNITED KINGDOM Senior Managers and Certification Regime Roll out to asset managers late 2019 DP18/2 — Transforming Culture in Financial Services paid by banks in fines since the start of the 2007-08 financial crisis USD326 billion  Mitigating cultural drivers of misconduct Financial Stability Board Toolkit for Strengthening Governance Frameworks to Mitigate Misconduct Risk  Addressing the “rolling bad apples” phenomenon  Strengthening individual responsibility and accountability