While Conduct Risk and Culture are separate concepts, they are inextricably linked and regulators now see culture as a key root cause of major conduct failings in the financial services industry.
Following the tracker mortgage scandal and the Central Bank’s report into behaviour and culture in Irish banks, Conduct Risk and Culture have both been crucial aspects of the regulatory agenda.
In recent years, the CBI have become (and continue to become) more focused in the supervision of Conduct and Culture across all sectors, including wholesale markets.
This is most recently demonstrated by the proposed introduction of the Individual Accountability Framework (IAF), which aims to reduce Conduct Risk and improve Culture in the financial services sector, as well as the upcoming review of the Consumer Protection Code (CPC) and other significant initiatives at the EU level.
As regulatory scrutiny intensifies in this area and the reputation of firms is increasingly at stake, it is important to stay ahead of the Conduct Risk & Culture agenda by implementing preventative and detective controls.
Our Conduct Risk & Culture services comprehensively cover multiple areas of your organisation so that you can identify, monitor and mitigate risks effectively across several lines of defence.
