The speed read

  • A possible game changer for measuring corporate culture
  • How can consumers ‘learn from experience’ in financial services?
  • Businessman sentenced to over five years in prison

A possible game changer for measuring corporate culture

This FCA Insight article addresses the crucial question of whether corporate culture can be empirically measured, coming up with some surprising answers.

The FCA’s Alex Chesterfield, along with Dr Alex Gillespie and Dr Tom Reader from the London School of Economics, confronts the paradox that culture – while widely accepted as instrumental in corporate success and responsibility – is generally considered to be impossible to measure.

But here Dr Gillespie and Dr Reader present the results of a research product three years in the making: the Unobtrusive Corporate Culture Analysis Tool (UCCAT).

This tool is designed to analyse publicly available data to produce a picture of a firm’s ‘cultural footprint’. This unobtrusive and inexpensive method can not only monitor, it can also reveal insights for a company.

The authors examine the effects of this new approach for regulators and legislators. They also pose the next big question of whether regulators, or firms themselves, will take a lead in determining which aspects of culture relate to performance in which sectors.

 

How can consumers ‘learn from experience’ in financial services?

In this piece for FCA Insight, Alex Chesterfield and Evan Franklin take a look at the challenge of helping customers to make better financial products decisions when those products are bought so infrequently.

Chesterfield and Franklin compare the effects of ‘learning from description’ and ‘learning from experience’. They argue that learning from experience is often far more effective and can lead to better decision-making in the future but can also come with high costs. And when it comes to buying financial products like mortgages, the inability to correct mistakes, and indeed the rarity with which they are purchased, makes learning from experience impossible.

So what’s the answer? Chesterfield and Franklin investigate some of the possible solutions, using recent research as well as looking at product design and technology, and make suggestions for what this could mean in the future for regulators.

 

Businessman sentenced to over five years in prison

An extensive investigation by the FCA and the National Crime Agency has led to a man being sentenced to a total of five years and eight months’ imprisonment.

Operation Tabernula, an insider dealing investigation, has now secured the convictions of six people. This businessman, sentenced in his absence after he absconded from justice during a trial in July 2017, has been convicted of money laundering, related to the insider dealing of two others.

One of these two was the man’s business partner, with whom he ran a luxury watch business. The man set up off-shore bank accounts and companies in Panama to conceal the source of his partner’s funds, which were gained through insider dealing. The individual is still at large.