Measures to Reduce Misconduct

In May 2015 the Financial Stability Board (FSB) agreed a work plan on measures to reduce misconduct risk, covering: (1) examining whether reforms to incentives, for instance to governance and compensation structures, are having sufficient effect on reducing misconduct; (2) examining whether steps are needed to improve global standards of conduct in the fixed income, commodities and currency (FICC) markets; and (3) coordinating reforms to other major financial threats. Collectively, these efforts are aimed at strengthening the resilience of the financial system by raising expectations for, as well as awareness of, good practice standards of behavior and conduct across markets and market participants. Therefore, this document presents a new wisdom of ethical conduct, compliant with the spirit of the corresponding applicable laws and regulations that is critical to foster public loyalty and confidence in the financial system.