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From the Banking Royal Comission in Australia:
Orr was right when she said there were doubts as to whether it was “appropriate or even possible to prescribe a particular culture for financial services entities”.
And as much as the community might demand that a board or a regulator can actually “ensure” that risk controls are in place and working throughout an organisation, Henry is probably right when he says it is too strong a concept.
His underlying point was that like it or not, no amount of legislation or regulatory oversight will prevent misconduct.
To be clear, this is not a reason to stop the processes of strengthening the legislation, or increasing the powers and resources of regulators.
But what we are dealing with is a question of how to guide banks and other financial institutions to build, and then maintain, cultures that put customers first.
