Prevention and detection of market abuse: stock brokers must implement surveillance, KYC, reporting, escalation and whistleblower frameworks. A new Chapter IVA mandates that stock brokers establish and maintain systems for surveillance of trading activities, robust know your client procedures, documented internal controls with defined roles, customized alert thresholds, and processes to detect mule accounts. Senior management and Designated Directors must implement and periodically review these systems. Detected suspicious activity must be reported to stock exchanges within prescribed timelines and summarized in half yearly reports; governance bodies must review compliance quarterly. A documented whistle blower policy with confidentiality and protection procedures is required.
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Prevention and detection of market abuse: stock brokers must implement surveillance, KYC, reporting, escalation and whistleblower frameworks.
A new Chapter IVA mandates that stock brokers establish and maintain systems for surveillance of trading activities, robust know your client procedures, documented internal controls with defined roles, customized alert thresholds, and processes to detect mule accounts. Senior management and Designated Directors must implement and periodically review these systems. Detected suspicious activity must be reported to stock exchanges within prescribed timelines and summarized in half yearly reports; governance bodies must review compliance quarterly. A documented whistle blower policy with confidentiality and protection procedures is required.
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