On 28 March 2019, the FICC Markets Standards Board (FMSB) published a statement of good practice for FICC market participants in relation to conduct risk in market transactions. Eight good practice statements are included in Section V of the document, which include:
- firms should have a taxonomy for the identification and assessment of common conduct risks that may occur in market transactions and that are relevant to their business;
- supervisors should consider whether their supervisory tools and processes allow sufficient oversight of potential misconduct in market transactions; and
- firms should ensure that the output of their risk identification and assessment process informs the development of monitoring and surveillance to address the identified risks.
FMSB members are expected, and other firms are invited, to consider their own practices in light of the statement of good practice and make any changes to such practices that they deem to be appropriate. Failing to do so will not, however, create any presumption or implication that a firm has failed to meet its regulatory or other obligations.