Indeed, Emily Shepperd, the Chief Operating Officer at the Financial Conduct Authority (FCA), has recently drawn attention to the portrayal of the world of finance as either dull or erratic and urged companies against encouraging behaviour similar to the glamourized versions of familiar financial players.
Less like Wolf of Wall Street, more like George Bailey
As she explained in her speech, delivered at City and Financial Global’s 8th Annual Culture and Conduct Forum for the Financial Services Industry on November 28, she said that things are far from what they seem, starting with the ‘Wolf of Wall Street.’ Furthermore, she pointed out the story of Michael Burry or ‘The Big Short,’ in which “an eccentric hedge fund manager discovers that the U.S. housing market is based on sub-prime mortgages, so he sets up a credit default swap market to allow himself to short the property market.” She added that: Finally, Shepherd urged senior leaders “to nurture healthy cultures in the firms they lead, (…) where employees feel psychologically safe to speak up and challenge, where remuneration does not encourage irresponsible behaviour.”
Crypto industry’s shortcomings
Focusing on the crypto market, in particular, Shepherd stressed that only “5% of crypto firms who applied to the FCA for registration showed that they understood anti-money laundering rules, but half of those who engaged seriously with us were registered.” As she said, the agency’s policy-focused events in May and June 2022 have been a major eye-opener: However, the events have allowed the FCA, known for its stringent approach, which has earlier invited criticism, to better “understand how the crypto sector works and where the future opportunities lie and for the sector to see why we have regulations and what is expected of them.
Upholding higher standards
Shepperd’s views were echoed by Dominic Duru, the co-founder of DKK Partners, a consultancy firm specializing in emerging markets like crypto, who added that all financial players should do their part in raising the industry to a standard higher than simply profiting, according to his statement shared with Finbold on November 30. As he stressed: In conclusion, Duru highlighted that this refers to everyone, “from established banks to fintech start-ups,” all of which “have an important role to play in upholding the highest standards (…) in the workplace,” and that the rising living costs should motivate “firms to think deeply about the assistance they can give to their employees and wider society.” Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
