Thomson Reuters has published a report on culture and conduct risk 2018.
Written on 10/08/2018
The firm is influential and multinational.  And publication of the report follows an annual survey of more than 600 financial services firms on how they are managing the challenges presented by regulatory focus on culture and conduct risk. The survey has highlighted distinct industry-wide and year-on-year trends against which regulated firms can benchmark their work. The survey is mostly of larger corporates, but retains its importance as a benchmark for IFAs and small businesses.

Some of the main findings include:

  • Conduct Risk:  There have been persistent challenges in the working definition of "conduct risk".   A threefold increase over five years in the number of firms that now have a bespoke definition of conduct risk.
  • Culture:  firms continue to discard potentially profitable business propositions due to culture and conduct risk concern.
  • A quarter of firms reported implementing software solutions to manage and report on specific conduct risks.
  • The perception that personal liability will rise as a result of the regulatory focus on culture and conduct risk remains high.

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