FSB Issues Responses to A Consultation Related to Misconduct Risk
FSB published public responses to the consultation on recommendations for consistent national reporting of data on the use of compensation tools to address misconduct risk. FSB expects to publish the final recommendations in late 2018.
The consultation was published on May 07 and it ended on July 06, 2018. FSB published responses from eleven entities, namely Association of Supervisors of Banks of the Americas, Bank Policy Institute, FirstRand, Global Federation of Insurance Associations, Global Financial Markets Association (GFMA) and Institute of International Finance (IIF), International Insurance Foundation, Italian Banking Association, Japanese Bankers Association, National Association of Insurance Commissioners, Nordic Financial Unions, and Standard Chartered. The recommendations are a part of the 2015 workplan of FSB on measures to reduce misconduct risk.
At the time of consultation, FSB had highlighted that the recommendations must be viewed in light of the existing national laws and in a manner consistent with the supervisory powers individual regulators have been granted. Decisions on the scope of data gathering, the types of data, and the appropriate data gathering cycle and frequency are solely for national supervisory authorities to make; such decisions should consider the types of supervisory work conducted, the relevant legislative and regulatory framework, the extent to which data is already collected, whether the firm is a significant financial institution, and the specific risk profile or financial activities of the firm.
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Keywords: International, Banking, Insurance, Securities, Misconduct Risk, Compensation Reporting, Recommendations, Responses to Consultation, FSB
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