Andrew Bailey warns of 'hubris risk' in firms' culture

Culture is 'of the utmost importance to financial regulators'

Carmen Reichman
clock • 3 min read

Incoming Financial Conduct Authority (FCA) chief executive Andrew Bailey has warned firms to be mindful of the "risk of blinding overconfidence".

In a speech given at the City Week 2016 Conference in London, Bailey (pictured) said management who were too self-confident and ran their businesses without ever challenging the direction of travel, risked creating bad outcomes. He said culture at firms was, and would remain, of the "utmost importance" to financial regulators as it had a major influence on the outcomes that mattered to them. "My assessment of recent history is that there has not been a case of a major prudential or conduct failing in a firm which did not have among its root causes a failure of culture as manifested in...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Failed financial advice firms tracker

Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 19 March 2026 • 1 min read
Applying proportionality to customer vulnerability under the FCA's Consumer Duty

Applying proportionality to customer vulnerability under the FCA's Consumer Duty

‘Proportionality does not equal minimalism’

Andrew Gething
clock 18 March 2026 • 5 min read
Administrators appointed at alleged £23m unauthorised investment scheme firm

Administrators appointed at alleged £23m unauthorised investment scheme firm

FCA issued High Court proceedings against Concept Capital Group last year

Jen Frost
clock 13 March 2026 • 2 min read