FSB updates on misconduct risk management

The Financial Stability Board has published a progress report for the G20 on its work plan to reduce misconduct in the financial sector. The plan includes:

  • measures to strengthen governance frameworks – FSB is working on how compensation tools can be used to address misconduct
  • actions to help authorities address misconduct risk – IOSCO published a report looking at how regulators can deal with misconduct in wholesale markets and
  • actions to improve market structures and practices – particular progress has been made in relation to benchmarks and initiatives are now focussing on fx