February 2019 — Market Abuse News

Compliance Tyler
Feb 27 · 2 min read

13 February 2019

The Financial Conduct Authority (FCA) issued a speech by Julia Hoggett, Director of Market Oversight at the FCA, at the AFME Implementation Regulation on Market Abuse in the UK event, London. The speech focused on some of the specific issues concerning market abuse that the FCA is concerned about.

The speech was also intended to help frame how market participants should think about the risk of market abuse and add some colour to recent FCA publications in Market Watch on the subject. During her speech, Ms Hoggett addressed the FCA’s approach to five behavioural questions. The approach serves as a framework for behavioural risk mitigation that is increasingly used throughout FCA Wholesale Supervision and helps regulated companies improve their way of doing business.

Speech Highlights

  • Compliance with MAR requires a series of situational judgments.
  • A regulatory system that relies on controls that detect when an event occurs will never be as effective as a system that also helps to prevent misconduct. While it is important that both regulators and participants have controls to detect suspicious behaviour, it is important that we consider how we first protect the market from such behavior on our watch.
  • Firms need effective risk assessments and must take into account the evolution of their systems and controls as risks develop within their businesses.
  • Control of information leaving a firm is as important as control of information moving within a firm.
  • Firms need to take responsibility to ensure staff understand the consequences of unlawful behaviour and must be vigilant to ensure it is not happening within their walls. Greater awareness of the risks of market abuse is needed.
  • Access controls, monitoring and general thinking in investment banking and advisory platforms are not yet as evolved as they should be.
  • More needs to be done to improve the industry’s ability to monitor market manipulation.

For a complete transcript of the speech please visit.

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Conduct Mind

A publication looking at regulatory issues within financial services

Compliance Tyler

Written by

Tyler Woollard is the founder and MD of The Conduct Mind Limited, a compliance consultancy specialising in Conduct Risk. www.theconductmind.com

Conduct Mind

A publication looking at regulatory issues within financial services

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