Thematic Plan
Under More Principles Based Regulation we will add to the help already available to small firms in order to assist them to benchmark their practices and processes against the positive (and not so positive) examples found in the course of our thematic work. This will enable the firm to decide that in relation to their business, what is, and is not, acceptable. When firms are selected for thematic work we expect them to participate.
Market Abuse Systems and Controls at Hedge Fund Managers
At the end of Q1 2008 we will begin visits to a wider cross section of Hedge Fund Managers to formally assess their market abuse systems and controls. This is in response to the previous work done in this area and reported in our Market Watch newsletter in October 2007. We will also continue to work with investment firms to assess the effectiveness of their controls to deal with market conduct-related risks from the business they are undertaking.
Conflicts of Interest in Private Equity Firms
We will complete the thematic work to review firms' systems and controls for managing conflicts of interest. We will communicate our findings to the sector in Q2 2008.
Financial Crime
We have reviewed the extent to which firms have responded to the move to more principles-based, high-level FSA rules about controls for anti-money laundering and countering the financing of terrorism, backed by risk-based guidance produced by industry. We will publish our findings in Q1 2008, including feedback on good practice and areas for improvement. In addition, we will also review the anti-financial crime systems and controls for a sample of small firms.
Treating Customers Fairly
For those wholesale firms with some retail customers, or in a distribution chain with retail customers, they will need to ensure that they meet the two TCF deadlines of March 2008 to have appropriate management information, and December 2008 for TCF to be fully embedded.