ICAEW and IFAC have published a report based on a roundtable discussion earlier this summer which brought together 50 UK and EU chief and senior executives from business and regulatory bodies.

The topics covered included the need to rebuild public trust in financial and capital markets, business and government; how differences in cultures, expectations  and different legal environments are leading to an increasingly fragmented international regulatory environment; the need to reduce complexity in regulations; and how a holistic view will create a better global regulatory environment.

Michael Izza, ICAEW Chief Executive, said: ‘Although regulation is only one piece of the puzzle, we cannot rebuild trust unless society has faith that those regulations protect the public interest. This trust is undermined when the rules are too complex, too fragmented, or their purpose is unclear.

‘At the same time, we need to recognize that regulation can’t do it all. Companies must take responsibility for the way they operate. This is why we are calling for everyone to work together to end the culture of piling on more and more rules and find answers that achieve the primary aims of protecting the public and encouraging ethical behaviour.’

Separately Sir Win Bischoff, chair of the Financial Reporting Council (FRC) emphasised the need for ‘increased and continuous focus on company culture’ in a keynote speech to delegates at the regulator’s conference, ‘Culture to Capital: aligning corporate behaviour with long term performance’.

He highlighted findings from a report the FRC published in July, Corporate Culture and the Role of Boards, saying: ‘Culture in business is a key ingredient in delivering long-term sustainable performance for all stakeholders including customers, communities, suppliers, employees and shareholders – ultimately society itself. But there have been some very public incidences of poor conduct. Rebuilding genuine confidence in business and long-term prosperity demands business to have a culture that lowers the risk of failure and achieves a wide range of positive outcomes, including serving the needs of wider society.’

‘We need a concerted effort to improve the integrity of business and its connectivity with society. Codes put forward principles for best practice that make bad behaviour less likely to occur and public reporting can make it harder to conceal such behaviour. But, by itself, a code does not prevent inappropriate behaviour, strategies or decisions. Only the people, particularly the leaders within a business, can do that.’

The IFAC/ICAEW report, From Crisis to Confidence:  Good Regulation, Governance and Culture, is here.

Sir Win Bishoff’s speech is here,