The latest edition of Market Watch looks at the effectiveness of surveillance arrangements, systems and controls. The FCA looks at the impact of failures when firms’ systems do not work as intended and the length of time it can take to remediate issues. It gives a number of examples of things that have gone wrong and how firms have discovered the problems, and looks at the results of a 2023 review on how firms monitor their automated surveillance models. The review looked at what firms commonly do and suggests measures firms should have in place to mitigate risks of issues going unidentified for long periods.
