Don’t miss this speech, “Trust and ethics: a regulators perspective,” delivered by Andrew Bailey, head of the UK’s Financial Conduct Authority. Building on his past insightful comments about the importance of culture in the financial services sector, Bailey focuses on trust — discussing how to it has broken down since the global financial crisis and how it may be regained.
“Trustworthiness demands two things: knowledge and skill; and good intentions and honesty. And, both necessary elements of trustworthiness need to be demonstrated … trust depends on solving the conundrum that there isn’t an independent source to prove honesty and good intent.”
For regulators, Bailey points out, that means looking at whether individuals in financial institutions, especially senior managers, act in ways that engender trust: with employees, shareholders, and society more broadly.
At Starling, we have always focused on the centrality of trust in an organization. Understanding the trust relationships among individuals is key to understanding their behaviors — how they will act, from whom they will take their behavioral cues, and whom they will influence in turn. Risk and performance optimization depend on those relationships.
Read the article: Trust and Ethics – a Regulator’s Perspective