Strengthening governance frameworks to mitigate misconduct risk: a toolkit for firms and supervisors

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The toolkit identifies 19 tools that firms and supervisors could use to address three overarching issues identified by the FSB as part of its earlier work on misconduct, namely:

• Mitigating cultural drivers of misconduct – including tools to effectively develop and communicate strategies for reducing misconduct in firms and for authorities to effectively supervise such approaches.

• Strengthening individual responsibility and accountability – including tools that seek to identify key responsibilities and functions in a firm and assign them to individuals to promote accountability and increase transparency.

• Addressing the “rolling bad apples” phenomenon – including tools to improve interview processes and onboarding of new employees and for regular updates to background checks to avoid hiring individuals with a history of misconduct.