The FCA have been highlighting that firms are failing to implement various recommendations in their PAD policies and controls to meet regulatory requirements and avoid market abuse. In order to prevent personal account dealing, firms should ensure preparation for the FCA’s requirements.
Watch this short video and discover “5 key steps to prepare for the FCA’s requirements on Personal Account Dealing”.
If you want to know more, click here for an infographic that will help your compliance department to identify the gaps on your compliance framework and risk assessment.
As the Financial Conduct Authority cracks down on personal account dealing – you may wonder how to avoid a conflict between employees’ personal interest and regulatory obligations.
Your firm is required to establish personal account dealing guidelines, and you could be fined for failing to do so. But are you monitoring personal account dealing properly?
We have identified 5 key steps to help you comply with the FCA Personal Account Dealing requirements.
Step 1 – Risk Identification
Identify the potential risks to the products you trade and plan for how to best mitigate those risks.
Step 2 – Design Effective Policies
Work on establishing clear policies, processes, systems, and controls and review them with your team to cover any gaps.
Step 3 – Control Framework
With appropriate policies and processes in place, work on the control framework. You must include in the framework; monitoring of trading activity, investigation of potential violations and disciplinary actions to be taken.
Step 4 – Real-Time Reporting
Provide real-time reporting on any suspicious activity and make sure client-confidential information is kept safe and managed adequately.
Step 5 – Improve training
Last but not least, train employees so they understand the firm’s personal account dealing policy and know how to avoid conflicts.
The manual process of monitoring the trading activity can be unnecessarily expensive and time-consuming. Automating this process will save you time and effort.
With MyComplianceOffice you can cost-effectively monitor these activities. A robust rules engine, electronic trade data capture, mobile app and easy UI make it simple to monitor personal trades for conflicts of interest.