The FCA has today published its 60th Market Watch Newsletter, looking at market conduct and transaction reporting issues in relation to the control of access to insider information.
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.
SteelEye is a RegTech and data analytics firm that was established to reduce the complexity and cost of financial compliance and enable firms globally to manage their regulatory obligations through a single platform.
SteelEye’s ability to bring together, cleanse, index and analyse structured and unstructured data across all asset classes and communication types enables clients to effortlessly meet their regulatory needs, because when all this data is in one place, compliance becomes both easy and cost-effective. And with everything under one lens, firms also gain fresh insight into their business, helping them improve their efficiency and profitability.
To date, SteelEye has launched solutions for record keeping, trade reconstruction, transaction reporting, trade and communications surveillance, best execution reporting, transaction cost analysis and advanced analytics for regulations including MiFID II, EMIR, Dodd-Frank, SMCR and MAR.
STEELEYE LIMITED, A COMPANY REGISTERED IN ENGLAND AND WALES WITH COMPANY NUMBER: 10581067, VAT NUMBER: 260818307 AND REGISTERED ADDRESS AT 55 STRAND, LONDON, WC2N 5LR.