Strengthening governance frameworks to mitigate misconduct risk: a toolkit for firms and supervisors
The toolkit identifies 19 tools that firms and supervisors could use to address three overarching issues identified by the FSB as part of its earlier work on misconduct, namely:
Mitigating cultural drivers of misconduct – including tools to effectively develop and communicate strategies for reducing misconduct in firms and for authorities to effectively supervise such approaches.
Strengthening individual responsibility and accountability – including tools that seek to identify key responsibilities and functions in a firm and assign them to individuals to promote accountability and increase transparency.
Addressing the “rolling bad apples” phenomenon – including tools to improve interview processes and onboarding of new employees and for regular updates to background checks to avoid hiring individuals with a history of misconduct.