The Financial Markets Standards Board (FMSB), in collaboration with Oliver Wyman, has published "Conduct & Culture MI: Boundaries of Current Practice," a spotlight review of current practices surrounding culture and conduct management information in the financial industry.
In May 2023, the FMSB's members compiled and submitted information on the strategic rationale for addressing conduct and culture concerns and the data and metrics used to assess them. They also submitted examples of dashboard-style management reports revealing the specific metrics and information used for assessing culture.
Through this research, the FMSB identified three stages of progress in monitoring and managing conduct and culture, as firms evolve from primarily responding to misconduct after the fact to utilizing advanced analytics to understand behavior and adopt outcomes-focused behavioral change.
“Having established the boundaries of current practice rather narrowly on management information,” the report concludes, "FMSB may extend this initiative with a focus on exploring how conduct and culture more broadly drives better outcomes for all market participants and the steps that firms can take to further evolve existing practices."
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