UNITED KINGDOM: FCA Encourages Firms to Develop Purposeful Cultures

Friday March 6 2020

The FCA have published a discussion paper on driving purposeful cultures. The paper is a set of essays which present a range of views from industry leaders, professional bodies and culture experts to help firms embed purposeful cultures.

The paper makes the case for healthy purposeful cultures in firms, leading to good outcomes for their customers, employees and investors. The FCA describes purpose as what a firm and its employees is trying to achieve – the definition of what constitutes success.

Transforming culture in financial services is a priority for the FCA. The FCA is tackling this in multiple ways, including making diversity and inclusion the norm and eliminating sexual harassment and other unhealthy practices from the workplace. The FCA recognise that there are barriers to creating and maintaining healthy, purposeful cultures including fear of shareholders’ short-term profit expectations and fear of the regulator itself. The contributors to the paper set out how leaders in financial service might go about overcoming these barriers and embedding purpose in their organisation.

A firm’s individual purpose is their own responsibility and, as with culture, the FCA does not prescribe what this should be. However, there are common elements of a healthy culture:

• a meaningful purpose
• an inclusive environment where it is safe to speak up
• effective leadership and governance
• employees that have the necessary capabilities and are motivated by appropriate incentives

Click on the link above for further information.