Tag: misconduct risk

misconduct risk

FSB Publishes Conduct Risk Mitigation Toolkit

The Financial Stability Board has published Strengthening Governance Frameworks to Mitigate Misconduct Risk, which provides a toolkit that firms and supervisors can use to tackle the causes and consequences of misconduct.
The toolkit completes an element of the FSB’s 2015 Workplan on Measures to Reduce Misconduct Risk to promote incentives for good behaviour through standards and codes of behaviour, such as the FX Global Code, and reforms to benchmark-setting practices. It also offers a toolkit of measures to address misconduct in wholesale markets and the FSB’s guidance on the use of compensation tools to promote good conduct.

FSB Publishes Update on Misconduct Reform

The Financial Stability Board (FSB) has published its second report on progress in its workplan of Measures to reduce misconduct risk that it agreed in May 2015.
The board says that ethical conduct, and compliance with both the letter and spirit of applicable laws and regulations, is “critical” to public trust and confidence in the financial system.
It adds that misconduct is also relevant to prudential oversight as it can potentially affect the safety and soundness of a particular financial institution.