Improving culture and governance in regulated firms has always been a major priority for the FCA, but what does it mean and how does it benefit consumers? \u00a0<\/p>\n

The Senior Managers and Certification Regime (SM&CR) came into force for FCA solo-regulated firms in December 2019. \u00a0The aim of this new regime is to encourage a culture of accountability, which in turn reduces harm to consumers.<\/p>\n

The rules apply to the majority of personnel working in a regulated business. They set minimum behavioural standards which must be observed and require Senior Managers to clearly demonstrate and understand where the responsibility for each business function lies.<\/p>\n

SM&CR creates a formal link between the decision-making behaviours of individuals at all levels of management and the overall conduct of the firm. When a firm is discussing its strategic outlook, they may ask themselves, \u201cwhere are we now?\u201d, \u201cwhere do we want to be?\u201d and \u201chow will we get there?\u201d As a result, therefore, culture and strategy can be interlinked. However, there must be a clear rationale and alignment between strategy, culture and values.<\/p>\n

Culture is different for each firm. There is not a \u201cone size fits all \u201cmodel, and the FCA does not prescribe what a firm\u2019s culture should be. They do, however, define culture as \u201chabitual behaviours and mindsets that characterise an organisation.\u201d \u00a0Culture arguably can be the most beneficial asset a business can have; it can complement good client outcomes and build sustainable growth.<\/p>\n

It is widely accepted that \u201cbad\u201d culture has been a major root cause\u00a0of conduct failure, subsequently causing harm to both consumers and markets.\u00a0 For organisations to be sustainable and successful, they must be seen as responsible.<\/p>\n

Good culture is often marked by specific values, and in the case of Thorntons Investments these are – Driven, Dependable, Dynamic and Diligent. These values are not only displayed on our \u201cmotivational wall\u201d in the staff area but are firmly embedded in the behaviours of all staff, starting at Board level and filtering down throughout the organisation. \u00a0<\/p>\n

We also champion good culture by reinforcing positive behaviour and \u201cdoing the right thing\u201d ahead of commercial business interests. We encourage meaningful discussions and open opportunities to challenge decisions. Some examples of this positive reinforcement are demonstrated throughout our company, from ongoing monitoring of client services and outcomes,\u00a0 supporting our staff in their professional development, reviewing our performance in quarterly \u201ctown hall\u201d business updates, to supporting local charities through our planned social events. \u00a0\u00a0<\/p>\n

Therefore, to increase consumer confidence, the rules must be placed at the heart of all organisations, thus reinforcing positive culture, and doing the right thing for clients.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Improving culture and governance in regulated firms has always been a major priority for the FCA, but what does it mean and how does it benefit consumers? \u00a0 The Senior Managers and Certification Regime (SM&CR) came into force for FCA solo-regulated firms in December 2019. \u00a0The aim of this new regime is to encourage a…<\/p>\n","protected":false},"author":9659,"featured_media":1054,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[83,167,168],"coauthors":[57],"acf":[],"yoast_head":"\n