Conduct risk management: Our supervision of market intermediaries
This letter summarises our supervisory work to date of market intermediaries conduct risk management, and highlights our observations of better and poorer practices.
Like all non-financial risks, conduct risk should be actively identified and monitored by senior management. Boards also need to exercise active stewardship in their oversight of conduct risk.
Where oversight and management of conduct risk is not well managed, it can lead to significant reputational and financial consequences for the intermediary.