LRN Corporation, a global leader in ethics and compliance (E&C) solutions, announced the release of its latest benchmarking data report, Ethical Gaps in the Financial Services Sector: 2025 Ethics & Compliance Program Effectiveness Report. The new report examines data from LRN’s recent 2025 Ethics & Compliance Program Effectiveness survey, specifically isolating the data gathered from financial services organisations, uncovering critical shortfalls in ethical decision-making, measurement of ethical culture, and supply chain compliance—areas that demand urgent attention as financial firms navigate an increasingly complex regulatory and risk landscape.

“For over a decade, LRN has been committed to identifying and sharing best practices that define successful E&C programs,” said Ty Francis, MBE, Chief Advisory Officer at LRN. “This report offers crucial insights into the financial services industry, where strong regulatory oversight exists, yet significant gaps persist in how ethics and compliance are implemented across different levels of leadership.”

The sector report calls attention to key gaps in traditional compliance metrics, revealing a significant disconnect between ethical expectations at the executive level and real-world decision-making among middle and frontline managers. It highlights how organisations often rely on policy adherence and training completions while overlooking critical insights into how employees perceive ethical leadership, accountability, and decision-making. Without robust assessments, companies risk missing the deeper cultural factors that shape daily behaviours and influence compliance effectiveness.

Key Findings from the Report:

• A Jarring Ethical Decision-Making Gap: While 91% of executives and senior leaders in high-impact financial services E&C programs are reported to consistently make decisions aligned with company values, only 28% of middle managers are reported to do the same—an alarming 63-point gap. 

• The Rift in Measuring Ethical Culture is Wider in Financial Services: Only 40% of high-impact financial services programs regularly measure their ethical culture, compared to 45% of global high-impact programs. Additionally, only 33% of financial services programs assess the effectiveness of their E&C programs, trailing the 39% of global high-impact programs that do so.

• Supply Chain Compliance Lags Behind in the Financial Services Sector: Only 25% of financial services programs reported increasing their focus on supply chain risks in the past 12 months, compared to 32% of global programs. High-impact financial services programs showed an even greater lag in strengthening supply chain oversight, trailing their global peers by 11 percentage points (28% vs. 39%).

“These findings reinforce the need for financial institutions to invest in ethical culture initiatives beyond the executive level,” Francis said. “To close these gaps, firms must move beyond traditional compliance metrics, adopting a more strategic, data-driven, and leadership-integrated approach to E&C. Bridging the leadership gap, enhancing the measurement of ethical culture, and addressing supply chain risks will be crucial for strengthening ethical decision-making at every level and building more resilient, principled organisations.”

LRN continuously draws insights from its annual benchmarking data studies to enhance its solutions, ensuring companies have the solutions to uphold ethical standards in an evolving landscape. By fostering trust and accountability and equipping E&C teams with data-driven insights, organisations can navigate uncertainty while building long-term resilience. E&C is no longer just about risk mitigation; it is fundamental to sustainable business success.

To access the full Ethical Gaps in the Financial Services Sector: 2025 Ethics & Compliance Program Effectiveness Report white paper, visit here.