In a recent speech, Andrew Bailey, Chief Executive of the U.K. Financial Conduct Authority (FCA) extolled the U.K. Senior Managers and Certification Regime (SM&CR) and measures to govern the remuneration of senior managers as important ways to incentivize the creation of “good culture” – defined as encouraging good things, rather than simply stopping bad things from occurring – at fund managers and other financial services firms. Bailey outlined his thoughts on ways the FCA can promote good culture; discussed factors driving bad conduct at fund managers; lauded the SM&CR and remuneration guidelines as two recent developments that incentivize good culture; and promoted increased workplace diversity. Bailey’s remarks provide fund managers with important insight into the FCA, which views culture – and the protection of the public interest – as the responsibility of firms, their managers and owners. This article summarizes the key points from his speech. For more on the SM&CR, see “FCA Issues Guidance on Expansion of Senior Managers Regime to Fund Managers and Others” (Feb. 1, 2018). For additional commentary from Bailey and the FCA, see “FCA Details Three of Its 2017 Priorities: Competition in the Asset Management Market, Liquidity Management and Custodians” (May 4, 2017).