In Regulatory Wrap for the week to March 1, Rob Mason discusses the FCA’s mission to pursue and prevent non-financial misconduct as well as insider dealing cases.
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In this Regulatory Wrap, we inspect the Financial Conduct Authority’s (FCA) issuance of surveys to financial entities requesting that they share instances of non-financial misconduct. In addition, the primary U.K. regulator is focusing in on insider dealing and implementing increasing transparency when handling these cases.
1. In continuation of previous events, the FCA has issued surveys to over 180 banks and broker dealers asking for details of any non-financial misconduct and resulting follow-up or disciplinary action
2. The FCA explained that it is using these requests to gain a “clearer understanding of when and where non-financial misconduct occurs”
3. The regulator took action against Mohammed Zina for fraud and insider dealing, and has 17 additional insider dealing cases in progress
4. In an effort to increase transparency, the FCA will “name and shame” any firms it is investigating, which will “amplify the deterrent impact of the FCA’s work”
5. To avoid being “named and shamed,” firms should consider how they will apply budget to internal processes
This Regulatory Wrap is brought to you by Global Relay’s Director of Regulatory Intelligence, Rob Mason.
In implementing surveillance procedures to monitor business communications, firms can ensure they avoid regulatory scrutiny related to non-financial misconduct and insider dealing.
