FSA releases systems and controls questions on SG rogue trading incident
FSA publishes a commentary on the internal controls and systems banks should have in place with reference to the Société Générale (SG) rogue trading losses.
LONDON – The UK’s Financial Services Authority (FSA) has published a commentary on the systems and controls banks ought to have in place, in the aftermath of the Société Générale (SG) rogue trading incident.
The recommendations come in the latest issue of the FSA's Market Watch newsletter. After consultation with 50 of the largest trading banks in London there are 17 questions and recommendations for next steps for banks to make. These include front-office culture and governance; the use of suspense accounts; the quality of management information, both routine and outside normal parameters; in addition to lower level IT reforms to safeguard passwords and monitor system access controls.
The newsletter stresses that most banks have already instigated their own review processes to look into gaps in trading controls in addition to highlighting the incomplete nature of the FSA’s appraisal and the desire for further industry input.
The newsletter can be read in full on the FSA’s website:
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Market players warn against European repo clearing mandate
Regulators urged to await outcome of US mandate and be wary of risks to government bond liquidity
Esma won’t soften regulatory expectations for cloud and AI
CCP supervisory chair signals heightened scrutiny of third-party risk and operational resilience
BPI says SR 11-7 should go; bank model risk chiefs say ‘no’
Lobby group wants US guidance repealed; practitioners want consistent model supervision and audit
Esma supervision proposals ensnare Bloomberg and Tradeweb
Derivatives and bonds venues would become subject to centralised supervision
Industry frowns on FCA’s single-sided trade reporting efforts
Buy side warns UK attempt to ease Mifir burden may miss target; dealers aren’t happy either
One vision, two paths: UK reporting revamp diverges from EU
FCA and Esma could learn from each other on how to cut industry compliance costs
Market doesn’t share FSB concerns over basis trade
Industry warns tougher haircut regulation could restrict market capacity as debt issuance rises
FCMs warn of regulatory gaps in crypto clearing
CFTC request for comment uncovers concerns over customer protection and unchecked advertising
