"For our part, we will be writing to all our members to remind them of their need to comply with our Code of Ethics, which speaks directly to the outcomes the FCA is seeking to achieve.”
Chair of the Treasure committee, Meg Hillier, thought the findings suggested the City was not only far from dealing with these issues but may even be going backwards.
“As the FCA highlights, it’s possible that the increase in reported incidents is due to changes in how firms report their cases. The Treasury committee which I chair will seek further clarity on this issue when we next invite the regulator to Westminster,” she added.
Jill Lorimer, partner in the financial services regulatory team at Kingsley Napley, said firms were “crying out” for more granular guidance in this area.
“In our experience firms are still working hard, and in some cases struggling, to get things right in what are often complex and nuanced situations. Firms must look both at fitness and propriety and conduct rules.
“There can be weighty consequences to getting it wrong. It is particularly challenging for smaller firms without significant in-house legal and compliance resources, or indeed a wealth of precedent in the form of previous examples to fall back on,” she explained.
alina.khan@ft.com
