FCA drops banking culture review

FCA drops banking culture review

The Financial Conduct Authority abandoned its review of culture at UK retail and wholesale banks just before New Year’s Eve.

According to sources cited by FTAdviser parent paper the Financial Times, the reasoning given was that each company is unique and cannot be easily compared.

The regulator’s review was previously detailed in its annual business plan last year, aimed at determining whether programmes to shift culture in retail and wholesale banks were “driving the right behaviour”.

Article continues after advert

It was focused on issues such as bankers’ pay, appraisal and promotion decisions of middle management.

The FCA responded that a focus on the culture in financial services firms remains a priority and that there is currently “extensive ongoing work” in this area within firms and externally.

“We have decided that the best way to support these efforts is to engage individually with firms to encourage their delivery of cultural change as well as supporting the other initiatives outside the FCA,” it stated.

Earlier in December, the regulators published its long-awaited report into the failings of Halifax Bank of Scotland, which caused outcry at the lack of punishment of senior managers blamed for the collapse, as well as there being no ‘naming and shaming’ of the Financial Services Authority staff identified but not named in the document.

The Treasury Select Committee’s chairman Andrew Tyrie also last month expressed disappointment at the delayed publication of the FCA’s report into the Royal Bank of Scotland’s Global Restructuring Group until next year.