The Financial Services Authority (FSA) is to propose new financial crime guidance for all firms following a review of systems and controls in investment banks.
The regulator says the investment banking sector has been “too slow and too reactive” to manage bribery and corruption risks.
The regulator will consult on proposed amendments to its current guidance, following a review of 15 firms, including eight major global investment banks.
The review found that a majority of the firms had more work to do to implement effective systems and controls.
The FSA has yet to decide whether further regulatory action will be taken against firms involved in the review.
Tracey McDermott, acting director of enforcement and financial crime at the FSA, says: “It is imperative that firms have adequate arrangements to control the risks of financial crime.
“We have seen examples of good practice and some examples of poor practice.
“Overall, despite the high profile of the issue, the investment banking sector has been too slow and too reactive in managing bribery and corruption risks.”
She adds: “Firms across all sectors must have appropriate controls to manage their financial crime risks, whether related to bribery and corruption or otherwise.”