The Financial Conduct Authority (FCA) has published a Guidance Consultation on the approach it expects recognised investment exchanges (RIEs) and multi-lateral trading facilities (MTFs) to take in respect of the oversight of member firm’s systems and controls
to monitor compliance by their users. The FCA expects the RIE or MTF to:
- operate a proportionate and risk-based monitoring system;
- operate a proactive approach which goes beyond a reactive examination of member-level systems and control failures once they have occurred; and
- take appropriate and swift action where there is evidence of inadequate systems and controls amongst one of its members, even if these have not yet had a negative impact on the market.
The deadline for comments is 21 May 2013.
RELATED LINK
http://www.fca.org.uk/static/documents/guidance-consultations/gc13-01.pdf