Regulators are focused on the efforts of financial services companies to identify and prevent misconduct at its root. Conduct risk frameworks will be expected to include enhanced monitoring and surveillance, inclusive of advanced technologies and data analytics, as well as ongoing metrics, reporting, and governance. In addition, the framework will be expected to be integrated throughout the operations of the company as part of a culture of ethics and compliance, including demonstrated support by senior management and the board and clear consequences for misconduct. Key areas of concern will include customer data privacy, sales/trading practices, and fair treatment in addition to conflicts of interest, market conduct, incentive compensation plans, and third-party oversight.
The excerpt was taken from KPMG article, “Ten key regulatory challenges of 2020.”
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