In a recent industry letter, the Central Bank specified good and bad practices in the identification, management and mitigation of market conduct risk by wholesale market firms.

Conduct risk is high on the regulatory agenda with the Central Bank intending to focus, as part of its 2020 supervisory work programme, on:

• the ability of firms to identify market conduct risk,
• the extent to which firms are sufficiently well controlled, to govern wholesale market conduct risk, and
• the flow and escalation of conduct-specific information within and across regulated entities and groups.

We have prepared a full analysis of the Central Bank’s conduct risk expectations along with the good/bad industry practices it has identified.  Click on the image below to download our analysis.