The UK Financial Services Authority (FSA) has
published Market Watch 25 (pdf), which focuses on firms’ reviews of their
systems and controls in light of the Société Générale (SG) ‘rogue
trader’ incident.

Market Watch highlights the measures firms should consider when
reviewing the systems and controls which protect them against ‘rogue
trader’ risk.

Amongst other areas, Market Watch looks at:

• Front office culture and governance, in particular are traders
  encouraged to take two-week continuous holidays, and appropriate
  segregation of front office staff from middle and back office functions;
• The use of suspense accounts;
• The quality of management information, both routine and outside normal parameters; and
• Elementary IT precautions, such as whether access to systems is password dependent.