In a “Dear CEO” letter, the UK Financial Conduct Authority (FCA) has informed wholesale firms of strategic areas which will be the focus of its program of proactive work.
Brokers are the main revenue earners for their firms and are also the main points of contact for clients. These two factors mean that they hold significant bargaining power over their employer.
Furthermore, brokers have access to sensitive and valuable information such as the overall supply-demand dynamics of the market, as well as the trading intentions of their clients. If not properly managed, these drivers of risk can lead to two types of harm.
First, there is an inherent conflict of interest where a broker’s personal interest might go against that of their client, preventing the latter from achieving best…
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