The Financial Markets Standards Board (FMSB) has published a final updated Statement of Good Practice on Front Office Supervision of Wholesale Traded Markets, setting out 15 good practice statements across five themes to support firms supervising market and client-facing activities. The guidance updates FMSB’s 2017 publication to reflect challenges arising from evolving regulation, new working practices and technological change. Key additions include clearer articulation of the role of a supervision framework, sharper distinctions between supervision, responsibility and controls, and more explicit expectations for supervisors’ roles and standards. The updated Statement also provides guidance on reasonable spans of supervision, managing conflicts of interest including those linked to delegation, measuring supervisors’ effectiveness, assessing the quality and context of information provided to supervisors, and setting responsibilities and proportionate controls for the quality of supervisory data. FMSB signalled further work with members during 2025 to examine how firms approach and monitor trading controls. The Statement is intended to supplement existing, broader guidance on front office supervision.
Financial Markets Standards Board 2025-01-08
Financial Markets Standards Board issues updated good practice on front office supervision in wholesale traded markets
The Financial Markets Standards Board published an updated Statement of Good Practice on Front Office Supervision of Wholesale Traded Markets, detailing 15 good practice statements to address evolving regulatory challenges, new working practices, and technological changes. Key updates include clearer supervision frameworks, distinctions between supervision and controls, and guidance on managing conflicts of interest and supervisory data quality.