On 20 April 2018, the Financial Stability Board (FSB) 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 identifies 19 tools that firms and supervisors could use to strengthen governance frameworks in three overarching areas: (i) mitigating cultural drivers of misconduct; (ii) strengthening individual responsibility and accountability; and (iii) addressing the “rolling bad apples” phenomenon. In relation to this final area tools are provided to improve interview processes and onboarding of new employees and for regular updates to background checks to avoid hiring an individual with a history of misconduct.

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