Identifying misconduct in financial markets

Held on Monday, October 8, 2018, 12.30-2.15pm.

With support from Norton Rose Fulbright


  • Gerry Harvey (FMSB)

  • Wendy Jephson (Nasdaq)

  • Peter Snowdon (Norton Rose Fulbright)



All told, the regulatory fines imposed on banks for rigging LIBOR reached $9 billion.

While the scale of the market manipulation – and the fines – were unprecedented, the techniques used to collude and distort prices were nothing new. In the joint Fair and Effective Markets Review that followed the scandal, the BoE, FCA and HMT charged the industry to better identify the causes and symptoms of misconduct, and to reinforce the “collective memory” of the markets to reduce future malfeasance.

In July this year, the FICC Markets Standards Board responded with its ‘Behavioural Cluster Analysis’ report. The work – which draws on 390 cases of malpractice across 26 different regulatory regimes – is comprehensive and important. Chief among its findings is that there is “nothing new under the sun”: a core group of abusive techniques has been used to fleece investors and market participants for over two hundred years.

We are, therefore, delighted that Gerry Harvey, Chief Executive of the FMSB, has agreed to talk us through the main findings of the report, and what they mean for the industry. Gerry is a former group head of compliance for ICAP, and has held senior market risk positions at RBS, Nikko, LIFFE, and NatWest.

How can the industry prevent each generation from re-learning the misbehaviours of its predecessors? And how can compliance officers keep up as technology gives bad’uns a constant stream of new tools with which to practice old tricks? Joining us to discuss the issues will be:

  • Wendy Jephson, head of behavioural science at Nasdaq. Wendy is qualified solicitor and behavioural scientist, and the co-founder of regtech firm Sybenetix (which was acquired by Nasdaq in September last year).

  • Peter Snowdon, a consultant in the financial services practice at Norton Rose Fulbright, and the author of the money laundering chapter of Financial Services Law. Prior to joining the firm, he was part of the general counsel's office at the FSA.

If you would like to join us (and, perhaps, add your own thoughts), please let us know by emailing or by calling the CSFI on 0207-621-1056. As usual, wine and sandwiches will be provided.

Sincerely yours,

Andrew Hilton