7 | Regulation Matters - January 2019
FG18/5: Finalised Guidance on financial crime systems and controls: insider dealing and market manipulation
The Financial Crime Guide for firms consolidates the FCA’s guidance on financial crime and aims to enhance firms’ understanding of the regulator’s expectations of systems and controls in this area. The guide gives practical help and information (including very useful examples of good and poor practice) to firms of all sizes on actions they can take to counter the risk that they might be used to further financial crime. The FCA keeps the guide under periodic review to make sure that it accurately reflects their findings and covers emerging risks and concerns. It is designed to help firms adopt a more effective, risk-based and outcomes-focused approach to mitigating financial crime risk. This version incorporates a number of minor changes to the guidance, although the most significant is the introduction of new guidance on insider dealing which is likely to be of interest to only a limited number of firms. Among other things: n FC Part 1: ‘A firm’s guide to preventing financial crime’ is renamed as the ‘Financial Crime Guide: A firm’s guide to countering financial crime risks (FCG)’. n FC Part 2: ‘Financial crime thematic reviews’ is renamed as the ‘Financial Crime Thematic Reviews’ (FCTR).
Senior management should take clear responsibility for managing financial crime risks and be actively engaged in addressing these risks. Your firm should: n Have a thorough understanding of its financial crime risks in order to apply proportionate systems and controls n Have an organisational structure that promotes coordination and information sharing across the business n Have appropriate, up-to-date policies and procedures in place that can be easily accessed and understood by all staff n Employ staff who have the skills and expertise to do their jobs effectively n Review employees’ competence and take appropriate action to ensure they remain competent for their role n Manage the risk of staff being rewarded for taking unacceptable financial crime risks and n Be able to provide evidence to demonstrate that it has adequate systems and controls to prevent the risk that the firm might be used to further financial crime
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