Managing Conduct Risk and protecting against Market Abuse


Risks might be blindingly obvious once in front of you, but they do not often occur to people beforehand. That is why is so important to understand what conduct risk means, identify the risks and drivers to protect your businesses and ensure markets remain clean.

As a firm, you must make clear to employees what your conduct expectations are and highlight good conduct. To maximize your chances to meet regulations expectations you must have a good Conduct Risk Framework.

In order to comply with regulations and meet regulatory expectations, firms require a set of controls and preparation to identity conduct risk and mitigate market abuse. The compliance department must understand the importance of an effective risk assessment to detect and act on suspicious behaviour.

At present, with all the changes brought by the pandemic such as employees working from home, regulators expect firms to take responsibility and make sure employees understand the higher risks and consequences of poor behaviour. During the Covid-19 crisis regulators across the globe are working together to ensure the markets maintain the highest standards of integrity and firms need to do their part on that. Firms are expected to mitigate outstanding risks and liaise with regulators, as necessary.

The UK's FCA, Prudential Regulation Authority (PRA) and the Financial Reporting Council (FRC) released a joint statement on 26 March allowing firms an extra two months to publish their annual reports, the report states: “The Market Abuse Regulation (MAR) remains in force and companies are still required to fulfil their obligations concerning inside information as soon as possible unless a valid reason to delay disclosure under the regulation exists.”

If you want to know more about the topic and regulatory expectation, join MCO and Gowling WLG experts Sushil Kuner and Ian Mason, for a discussion of crucial aspects of Conduct Risk and Market Abuse mitigation.

The agenda includes:

  • What does Conduct Risk mean?
  • FCA's 5 Conduct Risk Questions Programme
  • What are the Conduct Risk Drivers?
  • What should a good Conduct Risk Framework include?
  • The impact of Covid-19 on Conduct Risk
  • What is market abuse and why does it matter?
  • The heightened risks of market abuse arising from Covid-19
  • The FCA toolkit for market abuse
  • Current Enforcement trends

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Gowling WLG is an international law firm created by the combination of Gowlings, a leading Canadian law firm, and Wragge Lawrence Graham & Co (WLG), a leading UK-based international law firm.

With more than 1,400 legal professionals in 19 cities worldwide, Gowling WLG provides in-depth expertise in key global sectors and a suite of legal services at home and abroad. Gowling WLG see the world through clients’ eyes, and collaborate across countries, offices, service areas and sectors to help customers succeed, no matter how challenging the circumstances.