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How will ESG and regulatory shifts transform the wealth industry?
Webinar: How will ESG and regulatory shifts transform the wealth industry?
Olivia Fahy, Head of Culture, TCC
TCC’s Head of Culture Olivia Fahy took part in a round-table discussion organised as part of the Wealth and Asset Management 4.0 global research programme, which examined the major trends unfolding within the wealth and asset management industry and put numerous emerging catalysts for future disruption under the microscope.
The panel of experts included Lou Celi (CEO, ThoughtLab), HansPeter Wolf (Founder, Appway) and Nina Kerkez (Consulting Director, LexisNexis).
This fascinating discussion shed light on a number of salient issues facing the wealth management sector. From the increasing expectation that Environmental, Social, and Governance (ESG) considerations will continue its emergence as a key aspect of business, to the rapidly rising cost of financial crime compliance – which rocketed a full 18% year-on-year in 2020, in addition to the potential for tech automation to revolutionise the regulatory burden placed on financial firms.
Drawing on her wealth of knowledge as a FCA’s former culture lead, Olivia outlined the role culture is likely to play in the industry’s shift towards greater socially and environmentally conscious way of operation – citing recent CIPD research that has already shown that younger generations of consumers place corporate responsibility high on their list of motives when electing who to do business with.
— Olivia Fahy, Head of Culture at TCC Group“ESG investing is an increasing priority for investors and the trend towards ESG is set to continue. But firms shouldn’t just be considering how to incorporate ESG into their products, they also need to look internally and fully embed ESG factors into their strategies and organisational DNA.
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The regulator’s ongoing culture drive means companies will be expected to embed ESG considerations across their entire organisation. Social responsibility should be at the heart of a firm’s purpose, just like firms should strive to provide a safe, diverse and inclusive environment for all stakeholders.
Indeed, Olivia also revealed that it’s this commitment to Diversity & Inclusion that will likely go furthest to shape the regulatory landscape over the coming years, chiefly via new and incoming policies such as SMCR and the planned Consumer Duty.
These considerations are invariably going to necessitate a new approach from firms, alongside profound shifts in the way people, processes and tech are managed and so it’s important businesses take cultivating a healthy internal culture seriously to effectively navigate the transformations ahead.
“With organisations coming under pressure from clients, regulators, employees and investors to be environmentally and socially responsible, future-oriented firms are already incorporating ESG factors into their organisational culture to their advantage.”
Olivia Fahy, Head of Culture at TCC Group
Interested in learning more? Watch the full session on demand using the link below:
Wealth and Asset Management 4.0: How ESG-Regulations Transform Wealth Management (brighttalk.com)