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 copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here