The importance of culture to improving conduct within the financial industry
A speech by Greg Tanzer, Commissioner, ASIC, at Thomson Reuters’ Third Australian Regulatory Summit (Sydney, Australia), 27 May 2015
The subject of my speech today is the importance of culture in improving conduct within the financial industry. But, before I take you through that, I would like to provide some context.
As part of ASIC’s Strategic Outlook for 2014–15, we said that some of the key risks to our strategic priorities relate to:
- gatekeeper conduct in markets
- gatekeeper conduct in financial services.
We also said that:
- for gatekeepers in markets, conflicts of interest – which can arise from remuneration structures – can adversely impact on market integrity and investor outcomes
- for gatekeepers in financial services, weak compliance systems, poor cultures, unsustainable business models and conflicted distribution can result in poor advice, mis-selling and investor loss.
What is culture?
So, what do we mean by culture?