FMSB Spotlight Review examines hybrid working risks in FICC markets

The FICC Markets Standards Board (FMSB) has published a Spotlight Review examining hybrid working risks in FICC markets following the flexible working practices that emerged as a result of Covid-19.

The review seeks to support the adoption of hybrid working models in FICC markets in a controlled way by identifying key conduct risks associated with such models and considers certain steps that firms can take to mitigate them. The review categories the conduct-related risks into the following five thematic categories:

• Cultural change
• Supervision and control impairments
• Execution risks
• Sharing of confidential information
• Threats to market effectiveness

Within each of these categories the review examines a number of individual risks, including risk of sub-cultures developing, reduced engagement with training, slower resolution of operating incidents, inappropriate communication channels, loss of connectivity and controlling the flow of confidential information. Potential mitigants are considered in relation to each risk.