March 2018

Spotlight on culture; conduct in 2018

Overview

Culture in a business context is hard to define but has a significant impact on the conduct of employees and corporate governance. This especially relates to how risks are identified, understood, discussed and acted upon. APRA recently noted that the “issues of governance, culture and accountability in a large financial institution are complex and interwoven”.

However, it is subject that will be getting plenty of airtime in 2018 with the commencement of a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry; Bank Executive Accountability Regime legislation, set to become law; and the Financial Adviser Standards and Ethics Authority developing an industry code of ethics.

In fact, the broader discussion around corporate culture and its impact on conduct has increased exponentially around the globe since the GFC, and regulators have progressively focused on the importance of a good risk culture and strong governance frameworks.

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Learning objectives

After reading this article, you should be able to:

  • discuss the importance of a good organisational culture for business and how it can be managed
  • explain the implications of the Banking Executive Accountability Regime
  • describe the rationale for the Royal Commission into the financial services industry.

Knowledge areas and accreditation

Knowledge area: Ethics (60 minutes/1.0 point).

FPA CPD points 1.0 Dimension: Professional Conduct (Ethics) (FPA 009875).

AFA CPD points 1.0 (AFA 01022009).

CPA Australia CPD points 1.0 (CPA 000500).

TPB CPE (60 minutes/1.0 point).

SMSF Association CPD points 1.0.

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