Regulators are focusing on how culture & conduct risk can be operationalized and how financial institutions can audit their risk and evidence their successes.
Observations
Jul 08, 2025Last week, the UK's Financial Conduct Authority (FCA) announced that it was expanding its non-financial misconduct rules beyond banks to 37,000 financial services firms starting in September 2026.
Compendium
Jun 23, 2025Global standard setters now treat culture as a quantifiable driver of prudential and conduct outcomes: weak governance norms distort capital flows, while robust cultural oversight attracts long-term investment. Scholars and practitioners urge supervisors to complement rule-books with behavioural metrics and early-warning analytics, turning qualitative judgement on incentives, trust and social learning into the frontline of financial-system resilience.
