FCA publishes second 5 Conduct Questions feedback report

Published: 29 May 2018


In April 2018, the Financial Conduct Authority (FCA) published its second 5 Conduct Questions feedback report for the wholesale banking sector, however, the FCA has encouraged everyone in the wholesale sector to look at the report. The FCA has also indicated that they will be extending the 5 questions approach to specifically include other segments of the wholesale sector, including asset management. This report addresses the following key areas:

  • the importance of a design and overall governance
  • identifying conduct risk
  • fostering staff engagement and responsibility
  • provision of broad support for staff
  • insightful use of management information
  • considering the risks or unintended consequences of internal initiatives

The structure of the report is to provide reflections on the responses of 30 firms to five conduct-related questions. The approach was first introduced by the FCA in 2015, to support internal programmes for improving conduct, and enabling firms to challenge themselves and informally benchmark their efforts across the industry. The intent is to provide useful and timely feedback to firms on different approaches being taken to improve conduct, for the benefit of the wider wholesale banking sector. The report draws out examples of good and poor practice, as well as the FCA’s general observations. With culture and conduct remaining high on the FCA’s agenda, we encourage our members to continue considering these issues in the context of your own firms. If members have any questions, please contact Adele Rentsch in the Markets Regulation team.