IRELAND: CBI Publishes Securities Markets Risk Outlook Report

Tuesday February 16 2021

The Central Bank of Ireland (CBI) has published the Securities Markets Risk Outlook Report. The aim of the report is to inform regulated financial service providers, investors and market participants of the main conduct risks the CBI see in the securities market, with a particular focus on wholesale securities markets.

In the report, the CBI set out their expectations of what all firms involved in securities markets should do to identify, mitigate and manage those risks in the context of their particular business activities.

Additionally, the report also includes some of the key areas the CBI will be focusing on in 2021 with specific reference to the risk outlook.

The key areas of conduct risk where the CBI expect to see firms take specific proactive steps in 2021 are:

• Dealing with the impact of external shocks. This includes shocks arising from COVID 19 and Brexit;
• Successfully managing the migration to greener securities markets
• Managing the increasing complexity in securities markets and the rules that govern them;
• Ensuring meaningful transparency for investors and other market participants, in particular on costs and fees;
• Understanding the risks and implications of the increased use of indices, as well as being transparent with the market on their use;
• Bolstering systems to identify, mitigate and manage misconduct risk, with a particular focus on the risk of market abuse;
• Ensuring governance arrangements are fit for purpose and properly resourced, including as businesses expand or change; and
• Improving the quality of the data firms use in their business and report to the Central Bank.

Click on the above link for further information.