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ASIC's reflections on culture


ASIC's reflections on culture

September 22, 2015 2:48 PM | Posted by Batten, Richard | Print this page

ASIC Commissioner John Price made the following observations in a speech titled Trust and culture: What consumers want to the Customer Owned Banking Convention on 21 September 2015:

 ...  our biggest focus when it comes to culture is to encourage organisations to reflect on their own culture, and how that might be going wrong and enabling or encouraging unfair treatment of investors and consumers.

Poor culture, together with poorly designed financial incentives, can be an indicator and a driver of poor conduct. Identifying poor culture can help with detecting not just individual instances of misconduct, but broader, more systemic problems.

One of the biggest challenges in today's market is for institutions to develop robust policies and procedures to facilitate and encourage the pro-active culture sought by ASIC and other global regulators.  This has to involve achieving the right balance between pursuing legitimate commercial objectives and promoting positive consumer outcomes.  This in turn requires both strong leadership and empowered staff.