Regulators have historically sought to enhance a customer’s understanding of the products they purchase, imposing prescriptive requirements for disclosure, as well as setting professional standards for sales advisers. The goal is to rebalance the ‘information asymmetry’ – however issues have continued to arise. A new regulatory mantra has emerged: ‘conduct risk’.
Conduct risk is changing the global regulatory landscape. The aim is to drive financial services firms to revisit their approach to enterprise risk management; to move from a profit driven business model to a strategy that places customer centricity at its heart to rebuild trust in the market.
Conduct risk, and placing the customer’s best interest at the heart of everything you do, requires a shift in mind-set. Clients often ask where do we start, how do we embed conduct risk, what sort of framework should be established? This document seeks to respond to common issues our clients are facing.
Download the KPMG Thought Leadership 'Market Conduct: Conduct Risk' (PDF 969KB)