• Widespread misconduct in the financial sector on a broad scale creates mistrust, weakening the ability of markets to allocate capital to the real economy.
• This in turn may give rise to systemic risks, which is why addressing misconduct is part of the Financial Stability Board’s (FSB) work programme.
• Recent instances of misconduct have included collusion in the manipulation of wholesale markets and retail mis-selling schemes.

2018 04 - FSB (Financial Stability Board), Strengthening Governance Frameworks to Mitigate Misconduct Risk: A Toolkit for Firms and Supervisors - 78p