Thomson Reuters has published a report on culture and conduct risk 2018.
Written by Charlie Palmer on 10/08/2018
The firm is influential and multinational.  And publication of the report follows an annual survey of more than 600 financial services firms on how they are managing the challenges presented by regulatory focus on culture and conduct risk. The survey has highlighted distinct industry-wide and year-on-year trends against which regulated firms can benchmark their work. The survey is mostly of larger corporates, but retains its importance as a benchmark for IFAs and small businesses.

Some of the main findings include:

  • Conduct Risk:  There have been persistent challenges in the working definition of "conduct risk".   A threefold increase over five years in the number of firms that now have a bespoke definition of conduct risk.
  • Culture:  firms continue to discard potentially profitable business propositions due to culture and conduct risk concern.
  • A quarter of firms reported implementing software solutions to manage and report on specific conduct risks.
  • The perception that personal liability will rise as a result of the regulatory focus on culture and conduct risk remains high.

CMA announces disqualification of two directors of Somerset estate agents that breached competition law. The Competition and Markets Authority (CMA) has accepted disqualification undertakings from two directors of a residential estate agents in Somerset that was fined for breach of the Chapter I prohibition of the Competition Act 1998. In May 2017, the CMA fined Abbott and Frost Estate Agents Ltd for agreeing with five other estate agents to fix their minimum commission rates for the provision of residential sales services in the Burnham-on-Sea area. Two of Abbott and Frosts' directors have now each given the CMA undertakings not to act as a director of any UK company for periods of three years and six months and three years, respectively.


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