Statement of Good Practice

1. Financial markets - conduct - Financial Markets Standards Board (FMSB).

(SoGP).

The FMSB issues Standards and Statements of Good Practice for wholesale Fixed Income, Currencies and Commodities (FICC) markets.

FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets.

FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets.

(Source - FMSB)

The FMSB explains further:

Applicability of FMSB Statements of Good Practice (SoGP)

"SoGPs do not form part of FMSB Standards, and they are not subject to FMSB’s adherence framework.

Rather, they reflect FMSB’s view of what constitutes good or best practice in the areas covered by the SoGPs in question.

Member Firms are expected, and other firms are invited, to consider their own practices in light of the relevant SoGP and make any changes to such practices that they deem to be appropriate.

Failing to do so will not, however, create any presumption or implication that a firm has failed to meet its regulatory or other obligations."

Relationship with law and regulation

"FMSB Standards and SoGPs do not impose legal or regulatory obligations on Member Firms, nor do they take the place of regulation.

In the event of any inconsistency, applicable law, rules, and regulation will prevail.

In developing Standards and SoGPs, certain regulators may have commented on their drafting, alongside Member Firms and other bodies, such that the Standards and SoGPs, once finalised and published, are intended to represent an authoritative statement of global good practices and processes.

However, they are not normally endorsed by regulators. Where they are endorsed by a regulator, that will be made clear on the face of the Standard or SoGP in question."

Relationship with other codes

"Other Codes already exist in relation to certain markets, such as the FX Global Code, while others are in the process of being produced.

Some overlap exists between the work of FMSB and such other bodies and FMSB will seek to ensure it adopts a consistent approach in cases of overlap wherever possible and will seek to avoid issuing a Standard or SoGP where the subject matter is already covered adequately by existing regulation, or a Code issued by another body.

It may draw attention to Member Firms of an existing code and request that Member Firms act in a manner consistent with it once appropriate steps have been taken to confirm its applicability."

(Source - FMSB)

2. Other markets.

Similar statements and guidance in other markets and areas of work.

See also

• Best practice
• Better practice
• Code of practice
• Conduct
• Database
• FICC
• Financial Conduct Authority
• Financial crisis
• Financial Markets Standards Board
• Good practice
• Law
• Misconduct
• Practice
• Practice note
• Regulation
• Statement of practice
• Statement of recommended practice
• Statement of Standard Accounting Practice
• Uniform Customs and Practice for Documentary Credits
• Wholesale

Other resources

• Financial Market Standard Board's Statements of Good Practice
• FMSB's standards
• FMSB database of misconduct cases