Surveillance Temperature Check | 2021 Survey
Background to the Survey
- Eiger Regulatory Partners (‘Eiger’) in conjunction with Fingerprint Supervision, is conducting a follow-up Survey to the “CCO COVID Survey: key risks & strategic issues”. The purpose of this Survey is to produce an up-to-date cross industry view of the application and maturity of the trade, eCommunications and voice communications surveillance technologies. The Survey will initially focus on the Investment Banking, Hedge Fund, Broking and Asset Management sectors.
- The Survey will provide an insight to current surveillance practices in each sector and give survey participants valuable anonymised intelligence as to how peer group firms, within their sector, are set up which will provide a helpful benchmark for self-assessment and future planning purposes.
- Our hypothesis is that trade surveillance is the most mature discipline across all four sectors, e-communications will be implemented in all sectors in some shape or form and that voice surveillance is limited in application at the moment. Likewise the surveillance resources and capabilities will vary across large, medium and smaller companies across each of the 4 sectors.
Why does surveillance remain an increasingly important system and control issue?
- Given recent market volatility, the FCA remains focused on market integrity and continues to develop its technical and analytical capabilities for detecting market abuse.
- FCA regulatory expectations on firms for more effective surveillance are increasing so that new and novel forms of market abuse are both detected and prevented.
- You don’t want to be caught by the FCA: the recent FCA enforcement action against the portfolio manager Corrado Abbattista for market abuse specifically commented that the abusive trading was identified by the FCA’s internal surveillance system.