fotolia 66806993
Corporate culture and behaviour in the financial sector are under scrutiny as never before. Shortly after the Parliamentary Commission for Banking Standards published its report 'Changing Banking for Good', we hosted a discussion with the Banking Commissioners and key figures in the sector and subsequently offered comments to the formal consultation on the Banking Standards Review. In March 2014, we launched our publication on retail finance regulation, 'Putting Customers First' in which we examined these issues further. In his foreword to the book, Said Business School Professor Colin Mayer argued that '[c]ritical to restoring trust in retail financial services is a change in the culture and conduct of financial institutions, which realigns their interests with those of their customers'.                
Furthering this debate, the Finance Foundation hosted an event on October 22nd 2014 with support from AIG Europe Ltd. at which Oxford economists Nicholas Morris and David Vines discussed their book, 'Capital Failure: Rebuilding Trust in Financial Services', the culmination of the work of the Baliol Interdisciplinary Institute's Duty of Care in Finance project. The authors argue for reforms of governance and legal and regulatory arrangements that would address the question of trust by changing the ethical culture in finance to one that reinforces other-regarding behavour.