FCA scraps banking culture review

FCA interior 620x430The Financial Conduct Authority has scrapped its review of culture at retail and wholesale banks.

The review was announced just months ago, but sources told the Financial Times it had been decided that each banking company is unique and so cannot be easily compared.

The review was revealed in the FCA’s annual business plan last year and intended to determine whether attempts to change culture at banks were working.

Among the issues the review was to look at was banker pay, promotion decisions and how complaints are dealt with at banks.

Mark Garnier, a Conservative MP and member of the Treasury select committee, said: “I hope this is a delay rather than a cancellation because consumers need to know that an independent regulator is happy, overall, with bank standards.”

The FCA said: “A focus on the culture in financial services firms remains a priority for the FCA. There is currently extensive ongoing work in this area within firms and externally.

“We have decided that the best way to support these efforts is to engage individually with firms to encourage their delivery of cultural change as well as supporting the other initiatives outside the FCA.”