Global Trustee and Fiduciary Services News and Views Issue 50

Global Trustee and Fiduciary Services News & Views | Issue 50 | 2018 41 • The role of regulation in culture is not to attempt sweeping rules, but rather to use rules and supervision to create the right incentives and to provide tools to diagnose the key characteristics. And, the FCA can prompt and persuade. • On the role of reward, it is another influence to create the right incentives for good culture. • And, finally, on leadership, there is no question in his mind that it plays a crucial role in shaping culture. Bailey is not alone in his assertion that the issue of culture and conduct will continue to “run and run”. It is a view shared by a number of regulators globally. As Chairman Clayton has echoed, “this is a continuous exercise. Markets will change. Organisations will change. Culture and the effective implementation of positive culture must keep up.” 23 And it is a reasonable statement to make, as the rise of personal accountability regimes continues, particularly their wider adoption from banking to asset management, that both firms and regulators will be able to hold people to account where there is harm to consumers, firms or market integrity. Andrew Newson Senior Fiduciary Technical Analyst, Regulatory Services Global Trustee and Fiduciary Services Citi 1 http://www.fsb.org/wp-content/uploads/Misconduct-risk- progress-report.pdf. Link here . 2 http://www.fsb.org/wp-content/uploads/P200418.pdf. 3 https://www.fca.org.uk/publication/discussion/dp18-02.pdf. 4 https://www.fca.org.uk/publications/discussion-papers/dp18- 2-transforming-culture-financial-services. Link here . 5 https://www.fca.org.uk/news/press-releases/fca-publishes- discussion-paper-transforming-culture-financial-services. Link here . 6 https://www.fca.org.uk/publication/policy/ps18-14.pdf. 7 https://www.fca.org.uk/publication/policy/ps18-16.pdf. 8 https://www.handbook.fca.org.uk/handbook/DEPP/6.pdf. 9 https://www.fca.org.uk/publication/policy/guide-for-fca-solo- regulated-firms.pdf. Link here . 10 https://www.sfc.hk/edistributionWeb/gateway/EN/news-and- announcements/news/doc?refNo=17PR131. Link here. 11 https://www.sfc.hk/web/EN/published-resources/industry-related- publications/sfc-compliance-bulletin-intermediaries.html. Link here . 12 Proposed Guidelines on Individual Accountability and Conduct available at http://www.mas.gov.sg. 13 https://download.asic.gov.au/media/4744026/james- shipton-speech-the-trust-deficit-and-corporate-australia- 17-may-2018.pdf. Link here . 14 https://asic.gov.au/about-asic/media-centre/speeches/the- trust-deficit-and-superannuation/. Link here . 15 https://www.centralbank.ie/consumer-hub/tracker- mortgage-examination. Link here . 16 https://www.centralbank.ie/news/article/enhancing-culture- of-risk-taking-in-firms-gerry-cross. Link here . 17 https://www.centralbank.ie . 18 https://www.centralbank.ie . 19 https://www.centralbank.ie/news/article/conduct-risk- culture-and-regtech---colm-kincaid-director-of-securities- and-markets-supervision. Link here . 20 https://www.sec.gov/news/speech/speech-clayton-061818. 21 https://www.newyorkfed.org/newsevents/speeches/2018/ dud180326. Link here . 22 https://www.fca.org.uk/news/speeches/transforming- culture-financial-services. Link here . 23 https://www.sec.gov/news/speech/speech-clayton-061818.