FCA Abandons Bank Culture Review
Recurring Theme: Changing Regulatory Tide
The Financial Conduct Authority (FCA) recently announced its intentions to scrap a banking culture review planned last year. The decision has been linked to the recent departure of the agency’s former head, Martin Wheatley, who was viewed as particularly tough on the banking industry. The FCA has argued that the Banking Standards Board will sufficiently monitor banking culture with its individual, private examinations.
The decision reflects a transition among United Kingdom (UK) regulators away from the post-financial crisis scrutiny of the banking industry. It appears, however, that not everyone is comfortable with the FCA’s new direction. On January 20, 2016, FCA leadership will appear before parliament’s Treasury Select Committee to defend and explain the decision.