TY - JOUR
T1 - The senior managers and certification regime in financial firms: an organisational culture analysis
AU - Keller, Anat
AU - Kokkinis, Andreas
N1 - Funding Information:
This vision is supported by explicit regulatory discourse. FCA Letter to the Women and Equalities Committee of the House of Commons on Sexual Harassment in the Workplace (28 September 2018); Christopher Woolard, Opening Up and Speaking Out: Diversity in Financial Services and the Challenge to Be Met (19 December 2018, Ropemaker Place, London).
Publisher Copyright:
© 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022
Y1 - 2022
N2 - This article critically interrogates the experience of the implementation and enforcement of the Senior Managers and Certification Regime (SMCR) in light of interdisciplinary literature on organisational culture. We demonstrate that the SMCR brings the promise of enhancing effective regulatory supervision of firm culture, supporting the incipient professionalisation of senior manager functions in the financial sector and discerning tangible aspects of artefacts and behaviours that constitute the external layer of good culture. However, we argue that, apart from the more obvious risk of too little enforcement or enforcement targeted at misconduct in the private sphere, there is a risk that a perception of rigidity in enforcement may lead to the development of a counterproductive culture, especially if firms unduly rely upon tick-box quantitative measurement approaches to culture management, and that sound culture may be simplistically equated to compliance with the SMCR. This necessitates a careful and nuanced approach to supervision.
AB - This article critically interrogates the experience of the implementation and enforcement of the Senior Managers and Certification Regime (SMCR) in light of interdisciplinary literature on organisational culture. We demonstrate that the SMCR brings the promise of enhancing effective regulatory supervision of firm culture, supporting the incipient professionalisation of senior manager functions in the financial sector and discerning tangible aspects of artefacts and behaviours that constitute the external layer of good culture. However, we argue that, apart from the more obvious risk of too little enforcement or enforcement targeted at misconduct in the private sphere, there is a risk that a perception of rigidity in enforcement may lead to the development of a counterproductive culture, especially if firms unduly rely upon tick-box quantitative measurement approaches to culture management, and that sound culture may be simplistically equated to compliance with the SMCR. This necessitates a careful and nuanced approach to supervision.
UR - http://www.scopus.com/inward/record.url?scp=85128224808&partnerID=8YFLogxK
U2 - 10.1080/14735970.2022.2054165
DO - 10.1080/14735970.2022.2054165
M3 - Article
SN - 1473-5970
VL - 22
SP - 299
EP - 334
JO - JOURNAL OF CORPORATE LAW STUDIES
JF - JOURNAL OF CORPORATE LAW STUDIES
IS - 1
ER -