2015年-FSB全球金融稳定委员会_Measures_to_reduce_misconduct_risk_26页_493kb

Summary of "Measures to reduce misconduct risk" Progress Report (6 November 2015)

Core Content

This report outlines the FSB's progress in addressing misconduct in financial markets and institutions through three key workstreams: the role of incentives, international coordination on conduct in FICC markets, and coordination in the application of conduct regulation with a focus on credible deterrence.

Main Areas of Work

I. The Role of Incentives in Reducing Misconduct

The FSB has been examining how compensation structures, governance frameworks, and enforcement powers can influence the behavior of market participants and reduce misconduct.

1. Compensation Structures

• The FSB has established Principles and Standards for Compensation Practices (2009), which are monitored through the Compensation Monitoring Contact Group (CMCG).
• A 2015 questionnaire found that most FSB jurisdictions have fully implemented these standards, though challenges remain in governance alignment and the use of malus and clawback mechanisms.
• Malus and clawbacks are seen as effective tools to deter misconduct, but their application is still limited due to legal and practical barriers.
• The CMCG continues to examine the effectiveness of these tools and will report findings ahead of the 2016 G20 Summit.

2. Governance and Culture

• A strong governance framework is essential for defining, detecting, and addressing misconduct.
• The FSB has issued Principles for effective risk appetite frameworks (2013) and Guidance on supervisory interaction with financial institutions on risk culture (2014).
• The updated G20/OECD corporate governance principles (2015) emphasize the importance of board and executive leadership in setting the tone for ethical behavior.
• The FSB held a roundtable on governance frameworks in 2015, which led to discussions on improving accountability, transparency, and supervisory approaches.

3. Enforcement Powers of Banking Regulators and Supervisors

• Regulators have the authority to assess and enforce conduct standards, particularly in relation to risk management and internal controls.
• Challenges remain in attributing individual responsibility for misconduct, which may lead to enforcement actions being directed at institutions rather than individuals.
• Some jurisdictions are exploring ways to enhance individual accountability within prudential frameworks.

II. International Coordination on Conduct in FICC Markets

1. Standards of Market Practice

• Reforms in FICC markets have been driven by the need to improve transparency and accountability.
• The UK’s Fair and Effective Markets Review and the European Securities Market Authority (ESMA) have contributed to shaping better conduct practices.
• The BIS Markets Committee is working with regional FX committees to develop a single global Code of Conduct for FX markets.

2. Financial Benchmarks

• The FSB and IOSCO have been working to reform interest rate benchmarks (e.g., LIBOR, EURIBOR, TIBOR) and FX benchmarks (e.g., WM/Reuters 4pm London fix).
• IOSCO Principles for Financial Benchmarks (2013) were introduced to improve the integrity of benchmarks.
• The FSB has published reform recommendations for both interest rate and FX benchmarks, which are being implemented by market participants and regulators.

2.1 Interest Rate Benchmarks

• The Official Sector Steering Group (OSSG) has been monitoring the implementation of FSB recommendations.
• Progress has been made in reviewing methodologies, collecting data, and consulting with stakeholders.
• A final monitoring report is expected by July 2016.

2.2 FX Benchmarks

• The FSB has made recommendations for FX benchmarks, which are being implemented by regional FX committees.
• A summary report on progress was published in October 2015, highlighting good progress but also mixed outcomes.
• A follow-up review of FX benchmark providers is planned for Q1 2016.

2.3 Additional IOSCO Workstreams

• IOSCO is conducting a follow-up review of benchmark administrators to assess compliance with the Principles.
• It is also working on providing guidance to benchmark users and improving the annual Statements of Compliance for administrators.
• No new work will be initiated until guidance for administrators is completed.

III. Coordination in the Application of Conduct Regulation and Need for Credible Deterrence

• Continuous information sharing between prudential and conduct authorities is necessary to enhance coordination and enforce conduct rules.
• The FSB is monitoring whether additional misconduct issues could lead to systemic risks and will keep these under review.

Key Findings and Action Points

• Incentives and compensation structures are critical for preventing misconduct, and more analysis is needed on their effectiveness.
• Governance frameworks and culture within financial institutions play a key role in shaping ethical behavior.
• Enforcement powers need to be strengthened to ensure individual accountability in misconduct cases.
• International coordination is vital for ensuring consistent and effective conduct standards across global markets.
• Benchmarks reforms are a central focus, with the aim of improving transparency and integrity in FICC markets.

Next Steps and Timelines

• July 2016: FSB publishes final monitoring report on interest rate benchmarks.
• Q1 2016: IOSCO publishes final report on interest rate benchmark review and begins FX benchmark review.
• May 2017: BIS Markets Committee finalizes the FX Code and proposals for greater adherence.
• June 2016: IOSCO publishes report to strengthen the global framework for misconduct in professional markets.

Conclusion

The FSB is taking a multifaceted approach to reduce misconduct risks, involving reforms to compensation, governance frameworks, and enforcement mechanisms, as well as international coordination on conduct in FICC markets. These efforts aim to enhance market integrity, prevent systemic risks, and promote ethical behavior across the financial sector.