Transforming Culture in Financial Services – A Solution Driven by Banking Experts
David Szmukler and Molly Ahmed have written a chapter in Business Crime 2019, published by International Comparative Legal Guides (ICLG), examining the ways in which regulators in the UK and the US are using their powers to effect culture change, and how banking experts are an ideal solution that can be applied in order to achieve the outcomes demanded.
We highlight that each bank has its own culture and ethos, as well as a proliferation of sub-cultures amongst individual desks in banks. These cultures and sub-cultures within trading desks are far more nuanced and complex than any broad-based consultant would know or be allowed to know. We argue that an expert banker who has worked in the trenches is best placed to identify poor behaviour, misaligned incentives and culture and implement the proper behaviours, incentives and culture expected by shareholders, boards and regulators, such as the UK’s Financial Conduct Authority.