FSA outlines need for cultural change

A change of culture is needed in the financial sector in order to drive through reform, according to the chief executive of the Financial Services Authority (FSA).

In a speech at Bloomberg in London, Hector Sants said regulators and the regulated must come together to bring about this change.

He insisted that there must be some acceptance of collective responsibility for the financial crisis before the industry can move forward.

"I personally remain unconvinced that all senior management have taken on board the need to change and operate in a genuinely different manner," he remarked.

A cultural and behavioural shift is needed to ensure that the lessons of the crisis are learned and that history does not repeat itself.

Indeed, he insisted that regulatory rules can only achieve so much and said "it would be a mistake not to recognise that some of the failures have their roots in the issues of culture and behaviour".

Meanwhile, the Trades Union Congress has claimed there is an "overwhelming" case for reform of the financial system to create a global economy that "puts people and the planet first".