UK FICC Markets Standards Board Publishes Statement of Good Practice on Conflicts of Interest
10/14/2019The U.K. Fixed Income, Currencies and Commodities Markets Standards Board has published a statement of good practice for the FICC markets on conflicts of interest. The statement of good practice represents the FMSB’s view of best practice but is not subject to the FMSB’s adherence framework, so failure to comply will not indicate a failure to meet regulatory obligations.
The statement of good practice focuses on conflicts of interest that may arise where there is a divergence of interests, duties or responsibilities between two or more parties (including between clients, between a firm and its clients or between an employee and a firm or client), so that serving the interests of one party may cause detriment to another. The statement includes guidance for firms on: (i) identification of conflicts; (ii) measures to prevent or manage and mitigate conflicts; (iii) internal escalation of conflicts; (iv) controls for conflicts to ensure that they can be identified, prevented or appropriately managed in accordance with a firm’s policies and procedures; (v) record keeping; (vi) governance and oversight; and (vii) conflicts of interest policies and training.
View the FMSB's Statement of Good Practice.
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