In the newsletter, the FCA highlight a number of cases where firms have not had the proper processes in place for controlling and monitoring conduct risk related to insider information. Findings from a sample of Investment Banks indicated that some firms didn’t have any monitoring procedures and systems in place. Other firms had some processes in place, but were unable to provide sufficient records of when and by who insider information had been accessed. One thing is clear, the accuracy of insider lists offers significant room for improvement.
On the back of their findings, the FCA urge firms to take reasonable steps to ensure effective supervision and control of the access to insider information.
“We expect firms to take reasonable steps to ensure that the risks of handling insider information are identified and appropriately mitigated”
FCA Market Watch Newsletter, No. 60, August 2019.
Firms unable to respond to regulatory request with accurate records risk of being viewed as having weaknesses in their systems, procedures and policies, and may be subject to regulatory scrutiny. Read the full newsletter here.
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