Beyond compliance

Governance and culture directly impact how decisions are made, risks are managed and value is created. They are fundamental factors to the success of any financial institution and require continuous commitment to drive strategic growth and maintain a competitive advantage. This publication provides insight and analysis on the essential, interconnected elements of robust governance and culture within organizations.

Regulatory scrutiny

Regulators worldwide are continuing to sharpen their focus on governance and culture by introducing individual accountability regimes to drive meaningful consequences in the event of wrongdoing, reducing harm to consumers and strengthening market integrity. However, despite lessons from global incidents and financial scandals, the need to address licensed financial institutions’ (LFIs) cultural values and default behaviors is as pressing as ever.

With the introduction of the Central Bank of the United Arab Emirates’ (CBUAE) consumer protection regulation and standards, LFIs have the opportunity to drive coherence across governance and culture, ensuring compliance, performance and long-term sustainable growth.

Key requirements

Effective management and oversight

LFIs must develop a positive culture underpinned by strong governance policies and controls to ensure the fair treatment of consumers.
Board-approved governance

They must establish and maintain a governance framework that has been formally approved by the board. This framework should comprehensively outline the roles and responsibilities of all functions within the organization.
Robust risk management

Firms should design and integrate a comprehensive conduct risk management framework with clearly defined risk appetites and tolerances, appropriate controls and mitigation strategies, and staff education on compliance obligations.
Consumer-focused corporate culture

They should cultivate a culture that prioritizes customer service, fairness, transparency, accessibility, ethical conduct and effective disclosure, demonstrating integrity in all business activities.