Thursday, 12 June 2014 10:42
Chancellor promises to stamp down on abuses in finance sector
George Osborne has pledged to crackdown on abuses and tackle unacceptable behavior in the financial sector after announcing a review.
The Government will examine the way wholesale financial markets operate amidst recent serious allegations of misconduct, the Chancellor of the Exchequer said today.
The Treasury, the Bank of England and the Financial Conduct Authority will join forces to carry out the 'Fair and Effective Markets Review'.
It will focus on areas where the bulk of concerns about misconduct have arisen - fixed income, currency and commodity markets.
Drawing on the insights of public officials, market participants, end users of wholesale financial services, the Review is also intended to reinforce confidence in the fairness and effectiveness of UK wholesale financial market activity, and influence the international debate on trading practices.
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It builds upon the tough action Britain has already taken to punish the wrongdoers and fix the financial system, including the work of the FCA to reform LIBOR and the Parliamentary Commission on Banking Standards which has led to a new legal regime for senior managers.
Mr Osborne said: "The integrity of the City matters to the economy of Britain. Markets here set the interest rates for people's mortgages, the exchange rates for our exports and holidays, and the commodity prices for the goods we buy.
"I am going to deal with abuses, tackle the unacceptable behavior of the few and ensure that markets are fair for the many who depend on them."
Martin Wheatley, chief executive of the FCA, said: "Confidence and trust are critical to financial markets – and robust, reliable benchmarks are the bedrock of market integrity. I welcome this review, which will ensure that key markets operate with the highest standards of integrity."
A panel of market practitioners will also be appointed, to be chaired by Elizabeth Corley, chief executive of Allianz Global Investors.
The review will run for 12 months and the Government will consult on these steps in the Autumn.
The Government will examine the way wholesale financial markets operate amidst recent serious allegations of misconduct, the Chancellor of the Exchequer said today.
The Treasury, the Bank of England and the Financial Conduct Authority will join forces to carry out the 'Fair and Effective Markets Review'.
It will focus on areas where the bulk of concerns about misconduct have arisen - fixed income, currency and commodity markets.
Drawing on the insights of public officials, market participants, end users of wholesale financial services, the Review is also intended to reinforce confidence in the fairness and effectiveness of UK wholesale financial market activity, and influence the international debate on trading practices.
{desktop}{/desktop}{mobile}{/mobile}
It builds upon the tough action Britain has already taken to punish the wrongdoers and fix the financial system, including the work of the FCA to reform LIBOR and the Parliamentary Commission on Banking Standards which has led to a new legal regime for senior managers.
Mr Osborne said: "The integrity of the City matters to the economy of Britain. Markets here set the interest rates for people's mortgages, the exchange rates for our exports and holidays, and the commodity prices for the goods we buy.
"I am going to deal with abuses, tackle the unacceptable behavior of the few and ensure that markets are fair for the many who depend on them."
Martin Wheatley, chief executive of the FCA, said: "Confidence and trust are critical to financial markets – and robust, reliable benchmarks are the bedrock of market integrity. I welcome this review, which will ensure that key markets operate with the highest standards of integrity."
A panel of market practitioners will also be appointed, to be chaired by Elizabeth Corley, chief executive of Allianz Global Investors.
The review will run for 12 months and the Government will consult on these steps in the Autumn.
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