Andrew Bailey warns of 'hubris risk' in firms' culture

Culture is 'of the utmost importance to financial regulators'

Carmen Reichman
clock • 3 min read

Incoming Financial Conduct Authority (FCA) chief executive Andrew Bailey has warned firms to be mindful of the "risk of blinding overconfidence".

In a speech given at the City Week 2016 Conference in London, Bailey (pictured) said management who were too self-confident and ran their businesses without ever challenging the direction of travel, risked creating bad outcomes. He said culture at firms was, and would remain, of the "utmost importance" to financial regulators as it had a major influence on the outcomes that mattered to them. "My assessment of recent history is that there has not been a case of a major prudential or conduct failing in a firm which did not have among its root causes a failure of culture as manifested in...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

The FCA's DE&I volte-face: Why doing the right thing still matters

The FCA's DE&I volte-face: Why doing the right thing still matters

Delayed NFM regulations set to take effect in June

Jo Keddie
clock 07 April 2025 • 5 min read
FOS expects to resolve 20% more cases as complaints surge

FOS expects to resolve 20% more cases as complaints surge

270,000 cases estimated to be resolved in 2025/26 amid demand

Isabel Baxter
clock 03 April 2025 • 3 min read
The Vulnerability Review: A reflection on the FCA findings and addressing the elephant in the room

The Vulnerability Review: A reflection on the FCA findings and addressing the elephant in the room

'Identification. Action. Reporting – don't delay'

Jonathan Barrett
clock 02 April 2025 • 3 min read