“Unfortunately, our work in this area with wholesale broker firms found that many firms were not properly considering adverse information in regulatory references when recruiting and onboarding certified staff,” she said.
“We found some firms were willing to turn a blind eye to their new recruits being dismissed for market abuse, expense fraud and sexual harassment.
Article continues after advert
“They failed to put in place additional controls to prevent the individual repeating their behaviour. This was not only contrary to our expectations, but it also exposed the recruiting firm and their clients to unnecessary risks which could’ve been managed.”
sonia.rach@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
Page 3 of 3
