This progress report provides an update on the FSB’s misconduct workplan launched in May 2015. Ethical conduct, and compliance with both the letter and spirit of applicable laws and regulations, is critical to public trust and confidence in the financial system. Misconduct is also relevant to prudential oversight as it can potentially affect the safety and soundness of a particular financial institutions.

The FSB’s workplan covers: (1) examining whether reforms to incentives, for instance to governance and compensation structures, are having sufficient effect on reducing misconduct; (2) improving global standards of conduct in the fixed income, commodities and currency (FICC) markets; and (3) reforming major benchmarks.

The report provides an update on work to date and future actions for the different workstreams that are part of the workplan.

The FSB will publish a third progress report on its workplan in advance of the next G20 Leaders’ meeting in July 2017.