“Tone from within” – shining the spotlight for conduct risk identification onto individuals – latest FCA feedback on the 5CQ

The FCA recently published its Industry Feedback for 2019/20 on its 5 Conduct Questions (5CQ) Programme.

Originally launched in 2015, the 5CQ Programme informs the FCA’s strategy for the supervision of wholesale banks’ conduct and culture. The FCA publishes a report on the 5CQ each year.

This year the FCA’s focus was on individuals, and instead of annual conduct meetings (which typically involve top management executives and global heads) it hosted roundtable sessions with individuals at vice president level (or equivalent) – which it refers to as ‘the Engine Room’ – across a number of wholesale banks. By hosting these sessions the FCA sought to:

• assess how well staff understood conduct risk and their ability to identify and manage it in their day-to-day work;
• observe how staff absorbed management messages about purpose, principles and values, conduct and culture and the healthiness of speak up culture; and
• assess how conduct and behaviour was progressing as part of individual performance assessments.

For a more detailed discussion, please click here.