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Conduct and Culture Academy
Overview
Since launching the Conduct and Culture Academy in 2018 we have coached more than 100 senior conduct leaders from across our membership. The Academy supports members to help them exceed regulatory expectations. It provides delegates with the practical skills needed to effect the changes in conduct risk management and culture required by a regulated firm’s board.
The landscape of supervision continues to evolve - especially during the pandemic. To help we have retooled the Academy to meet the challenges faced by all conduct-regulated firms in 2021.
The regulatory focus in 2021
The regulatory focus on conduct and culture is intensifying. This has not arisen solely because of the pandemic but has been either accelerated or crystallised by the disruption to normal working patterns and the economic impact at all levels that have hit hardest the daily lives of ordinary staff and small businesses.
The Academy will address the two most pressing topics facing members as we consider the practical application of conduct and culture in 2021:
- Culture Audits: During 2021 regulators in the UK, Singapore and other conduct jurisdictions are rolling out a new supervisory tool: Culture assessments. The response to Covid-19 is a true reflection of the health or otherwise of a firm’s culture, in particular the way in which management can monitor and manage remote workers’ behaviour. This now does not just mean preventing misconduct, but the FCA in several publications has been pressing for firms to use the pandemic as an opportunity to reinvigorate their purpose – which is key to determining culture.
- Remote working: We will examine how remote working has changed each firm’s dynamics, notably in how managers interact with staff to guide, support and motivate them. We will share feedback from private research that points to how firms can best apply political advice to the practical task of a potential return to the office. And, we will look at how firms can best engage with technologies to stay resilient in the face of continuing uncertainty. As ever, we also expect to moderate – one of the Academy’s main attractions – lively discussion as members compare their firms’ varied experiences. For example: how best to reconcile the business need for greater control, surveillance, and productivity against concerns for human risks of staff motivation, mental health and privacy?
About the Academy
The heart of the academy remains unchanged; delegates will experience an intensive programme where they will develop practical skills, frameworks and behaviours to put customers and ethical values at the heart of decision-making, helping them to manage conduct and culture as required by regulators and the board.
Attendance is at two, two-day workshops in April 2021 and May 2021. The workshops are supplemented by highly-focused reading lists and downloadable resources. Previous delegates have really valued being able to share their individual challenges, in confidence, with their peers and our expert faculty. Delegates can review their experiences, and gain/share practical advice with other senior conduct professionals.
The philosophy of the academy is to assess and respond to the individual needs of the cohort in order to tailor the curriculum to their changing and specific needs.
The Academy brings together:
- widely informed knowledge of industry best practice in Conduct and Culture reporting;
- leading-edge research insights, with academic rigour;
- practitioner expertise and experience.
We combine these to provide a practical programme to embed and report on exemplary conduct and culture in your organisation. The Academy is an academically sound opportunity for your organisation to develop innovative, structured, effective long-term human risk strategies that deliver business value as well as regulatory comfort.
You can download a comprehensive brochure on the Academy here.
Who should attend?
We welcome a range of different job types from your firm to attend the Academy, from senior managers, to compliance to other ‘human risk’ disciplines, including HR, risk governance, financial crime, and general counsel.
Booking
If you would like to register for the Academy, please click 'Book Now', or email Training@ukfinance.org.uk, or call the team on +44 20 3934 1197 .
Workshop themes and dates
- Enhanced conduct and culture frameworks to embed best practice and drive value – 22 April
- Assessing and managing culture – 23 April
- Building better MI for management and reporting – 25 May
- Innovative behavioural initiatives to embed conduct and culture and drive value – 26 May
The academy will be repeated in October
Any questions?
A comprehensive brochure on the Academy can be downloaded here.
Take this training in-house
If you have five or more delegates who wish to attend this workshop, it may be more cost effective to run it in-company. To find out more about in-company training, please contact the team on 0203 934 1197 or training@ukfinance.org.uk.
Event details
Venue
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Online / London
Date and time
-
22 April 2021 to 26 May 2021 10:00 - 16:00
Full and associate member rate
£3,750 (+VAT)
Non-member rate
£4,750 (+VAT)
WORKSHOP ONE – Enhanced Conduct and Culture frameworks to embed best practice and drive value
- 22 April 2021 | 10am – 4pm – Workshop
Workshop Detail
- The impact of regulatory evolution: Conduct Risk, SMCR, Culture and Ethics, Reputation
- Exploring the management challenges and value opportunities of good Conduct and Culture: thought vs instinct, integrity vs lip service, long term vs short term goals
- Conduct frameworks that create business value and embed good behaviour: engaging the whole firm to identify and articulate behaviours to reward or crowd out
Workshop Detail
- Evolution of latest regulatory thinking: Conduct Risk, Behaviour and Culture and what the regulators are now expecting:
- TCF to SMCR to Culture management
- The mechanics of regulatory failure – how Conduct depends on how we manage Conflicts of interest
- Social licence and shareholder conflicts
- What underpins Conduct and Culture and why is difficult to pin down and measure?
- Absent indicators & leading indicators vs crystallisation of risk
- Demonstrably consistent thinking and acting – impediments, incentives and instincts that drive behaviour
- Lessons from other industries – are we all that different?
- How does a framework help?
- Risk appetite vs embedded values
- Articulating risks and desired behaviours – codes of conduct and culture measures
- A new approach to metrics – reminder of their purpose
- Engaging the whole firm vs tick box operational, compliance and credit risk frameworks.
- Embedding conduct to link the regulatory imperative with strategic value – reward mechanisms
WORKSHOP TWO – Assessing and Managing Culture
- 23 April 2021 | 10am – 4pm – Workshop
Workshop Outline
- Meaningful definitions of Culture and indicators to assess and track culture
- Why is Culture a regulatory issue and what is the regulatory Culture Audit?
- Identifying behaviour that can harm or strengthen it
- How to stimulate business-wide action to enhance culture; reviewing tools, metrics, management
Workshop Detail
- Defining culture
- Standard definitions, and examples of good or bad culture
- Behaviour as underpinnings of Culture – indicators of culture and potential assessment methods
- Regulatory approach to Culture and how this is evolving
- Conduct, Culture and Value
- Aside from the regulator, why is Culture key?
- Behaviour (or conduct) as the basis for strategic implementation and value
- Psychology of behaviour
- Instinct and short term goals as key drivers of behaviour that underpin culture
- Bias and flawed information, heuristics that underpin misconduct and Culture
- Focus on behaviours and ‘social license’
- Managing culture:
- Competencies to strengthen Culture and key levers to transform behaviour
- Tools and practices to embed lasting change (RIGHT, F&F, )
- Ethical dilemmas
WORKSHOP THREE – Building better MI for management and reporting
- 25 May 2021 | 10am – 4pm – Workshop
Workshop Outline
- Linking MI to decisions that drive firm value and meet regulators’ expectations – overcoming mindsets that obstruct or foster positive change
- What we need vs what we have: building focused indicators for effective decision-making and governance
- How better MI frameworks both produce and reflect improving behaviour and culture – the real success measure of Conduct initiatives
- How to identify or enhance metrics that strengthen conduct, culture and decision-making to support long term value – applying the conduct lens to the full value chain
Workshop Detail
- Planning and designing effective MI
- Mindsets that obstruct or foster positive change – vested interests and “number comfort”
- Linking MI to ultimate Long term value, however indirectly
- Scalar vs linear indicators; adaptive dashboards and data integrity principles
- What we have vs what we need
- Using a behavioural lens to turn old backward looking indicators, into pre-emptive leading indicators
- Asking better questions
- Impact of better MI on Culture and implications for business management
- As Critical analysis, interpretation and thought provocation tools
- Balanced MI methodology – pictures, not triggers
- Prioritising new and enhanced metrics – the benefits of newTech.
- How to design better metrics
- Examples and exercises from industry
WORKSHOP FOUR – Innovative behavioural initiatives to embed conduct and culture and drive value
- 26 May 2021 | 10am – 4pm – Workshop
Workshop Outline
- Connecting leadership skills to SMCR and business value; define, measure, reward desired behaviours at all levels
- Identifying value creative conduct: ‘moral courage’ to change practices, learn lessons, challenge status quo, foster feedback
- Examples of tools, concepts and workshop content to build understanding and competencies at all levels
- Competency frameworks to embed Conduct and Culture: align behaviours to training, reward models, firm values, goals and stakeholder expectations
Workshop Detail
- Connect behaviours to SMCR, other elements of accountability and link to value:
- Link to regulatory imperative and goals of the firm – both sustainable long term financial value and espoused values, accounting for external costs
- Examples from other industries
- Leadership skills to unlock neglected human capital value in all staff:
- Prioritise, recognise, define and articulate desired behaviours at all levels
- Demonstrate, measure, and reward desired conduct – crowd out perverse behaviour
- Use revised competency frameworks to underpin desired behaviours
- Innovation principles: ‘moral courage’ to seek out potential future opportunities and threats at all levels, reassess past decisions, learn lessons, challenge status quo
- Followership models
- Balanced behavioural competency frameworks
- To communicate, guide and assess skills levels to refocus development and reward practices
- Aligning Conduct, training, other activities to reinforce reward models
- Integration into Conduct and business frameworks to embed conduct enhancement seamlessly into sustainable outcome oriented and value enhancing business model
Dr Roger Miles
Financial practitioner turned specialist researcher in the field of regulated Conduct
Dr Roger Miles researches human-factor risks among regulated financial providers worldwide, helping steer their responses to new Conduct regulations, Culture Audits and capital charges against Reputation Risk. He convenes knowledge sharing groups of senior executives including forums at UK Finance, whose Conduct and Culture Academy he co-founded in 2017.
Following audit practice with PwC he advised the Boards of large publicly listed companies in the UK, EU and US as a partner in investor relations firm Georgeson & Co. He was Director of Communications and Enterprises for the BBA (under Sir Brian Pitman), UK corporate affairs lead at FBE in Brussels, and later a Head of Risk Communications in HM Civil Service, before giving all that up to requalify as a risk psychologist and university lecturer.
He frequently works by invitation directly with firms’ senior leaders on in-house initiatives to develop their frameworks for conduct risk and culture.
With research among more than 400 firms participating in UK Finance Conduct sessions since 2016, he has amassed a unique exemplar body of conduct programmes, reporting designs, indicators and definitions. He welcomes sharing these insights with UK Finance attendees, to inform discussions of ‘exemplary practice’ in measurement and reporting on conduct, culture and reputation.
Session attendees consistently rate him 5* / 95-100% for “expertise”, “ease of understanding”, “open and engaging”, and “enjoyable experience”. Each year he leads small-group interactive workshops for more than 1000 attested Senior Managers in financial firms; since 2010 he has taught one-to-one or in small groups, 10,000+ leaders and divisional managers in financial, professional and government service.
His research often uses language analytics and specialist ‘sensitive topic research’ techniques to identify previously unvoiced concerns. These findings, unique to each firm, guide the design of the firm’s framework of human-factor risk indicators and reports, encouraging the start of productive “conduct conversations” at all levels, embedding spontaneous best practice in risk reporting.
He lectures as a visiting SME at business schools in Cambridge and London, and at UK Defence Academy; and moderates cross-industry working groups for Board appointees, Compliance, Legal and HR professionals.
His published work includes the financial sector’s popular handbook Conduct Risk Management: A behavioural approach (2017) and Culture Audit: Reporting on behaviour to conduct regulators (2021), which includes chapters co-authored with senior regulators in the UK, EU, US and APAC. (Both titles available to UK Finance session attendees at a special discount). He co-edits the Encyclopaedia of Key Psychology Concepts for the London School of Economics annual Behavioral Economics Guides and is a contributing editor at Thomson Reuters Regulatory Intelligence.
In 2006-7, using live observation and narrative research, he analysed how banks were ‘gaming’ their public reporting on regulatory capital. King’s College London awarded him a PhD for this work, whose theory was validated abruptly when global financial markets crashed in 2008. In 2010 he accurately predicted the change of financial regime to ‘behaviour-based regulation’; the UK’s Conduct regime launched in 2013 and included core principles he had earlier identified.
Patrick Butler - Academy
Managing Director of Calitor
- Patrick advises and coaches Executive Committees and boards of global and national financial services firms to enhance their business Culture, build effective Conduct Enhancement programmes and strengthen risk management practices at all levels. He founded Calitor in 2012, through which he has helped clients such as Barclays Bank, RBS, Natixis and Commerzbank.
- Based on the practical solutions developed with clients, Patrick designs and delivers bespoke Regulatory Risk Management and practical business culture and conduct enhancement programmes to financial institutions and other regulated industries, either individually, through executive education foundations such as CEDEP or via Industry Associations such as UK Finance.
- In early 2018 he co-founded and continues to deliver the Conduct and Culture Academy at UK Finance, that brings decision makers at retail and wholesale banks together to learn how to develop practical solutions to meet or exceed regulatory expectations and drive sustainable value. The course builds on a deep understanding of the latest regulatory thinking, advanced behavioural models, strategic models, practical expertise, leading edge tools and bespoke frameworks.
- Prior to this Patrick was a British Diplomat in the Far East, including being part of the first official British diplomatic visit to North Korea; an Investment Banker with HSBC and then EMEA head of Global Banking Compliance at Bank of America Merrill Lynch. In this latter role he restructured, based on Conduct principles, the Investment Banking, Debt and Equity Capital Markets and Equity Research Compliance functions, following the merger of the two banks in 2009.
- He is also Deputy Chairman designate to the board of MIRIS AS, a clean energy and smart building focussed Norwegian real estate technology company; a Non-Executive Director and adviser to Sonder Financial, a start-up payments platform technology provider; an adviser to Arkadia Lending, a start-up Peer-to-SME lending platform, and mentors small and medium businesses facing substantial growth or change.
- Patrick received his MBA from INSEAD in 1999.
The Academy is relevant to all conduct-regulated firms, from retail and small business banking, to loans, mortgages, cards and payments, sales and trading, research, advisory, capital markets, corporate lending, private banking, asset management, wholesale and retail insurance, broking, and related providers such as ‘fintech’ suppliers and other transaction support services.
You will benefit from attending if you work within any of the roles listed below:
- C-Suite and senior managers responsible for strategy or governance who needs to better understand how the new conduct and culture imperatives driven by regulators affect their business objectives and personal accountability under the Senior Managers and Certification Regime (SMCR);
- A business or desk head who now has greater responsibility for managing conduct and culture in their teams and wants to develop their skills to drive sustainable value through better conduct and client relationships, or to better contribute to their firms’ overall cultural or values programme;
- A leader of human resources or learning and development responsible for driving more effective training and competency regimes aligned with conduct principles, refocussing incentive and leadership programmes and for rebalancing controls relating to codes of conduct or ethics.
