A strong corporate culture is a valuable asset

THE Monetary Authority of Singapore (MAS) last month issued its Guidelines on Individual Accountability and Conduct, which contain measures that financial institutions (FIs) should put in place to "promote the individual accountability of senior managers, strengthen oversight over material risk personnel, and reinforce standards of proper conduct among all employees".

This is very welcome as FIs play a crucial role in safeguarding the integrity of the financial system. Indeed, if trust in FIs is eroded, the entire market suffers and this can have dire consequences for the whole economy.

However, in the view of SIAS, or Securities Investors Association (Singapore), before procedures, processes and safeguards to promote ethical behaviour and accountability can be properly effective, one important ingredient has to be in place - the right corporate culture. Furthermore, this is true of all organisations, not just FIs, for without the right culture, all companies will eventually run into trouble.