BoE publishes Fair and Effective Markets Review: The Fair and Effective Markets Review has published its final report and recommendations. The Review looked at deficiencies in the markets and their root causes, examined progress to date (such as in regulation of benchmark activities) and at where gaps remain. There are 21 recommendations, all aimed at raising standards in the wholesale fixed income, currency and commodity (FICC) markets. Some are aimed at individuals, some at firms and some at regulators. Key recommendations include:
- extending criminal sanctions for market abuse to a wider range of instruments and increasing the maximum sentence to 10 years' imprisonment; and creating a new civil and criminal market abuse regime for spot foreign exchange;
- mandatory qualification requirements and disclosure requirements for references, that will prevent the "recycling" of individuals with poor conduct records;
- creating an FICC Market Standards Board and encouraging international action from IOSCO to create a set of common standards for trading practices across FICC markets;
- extending the Senior Managers Regime to a wider range of firms;
- working towards a single global FX code;
- looking at a global solution to aligning remuneration with conduct risk; and
- improving forward-looking supervision of FICC markets.
BoE highlights quarterly bulletin items: BoE highlighted items of interest in its forthcoming quarterly bulletins. It will look at:
- the history of Solvency 2 and prudential regulation of insurers under it; and
- banking interconnectedness.
(Source: BoE Highlights Quarterly Bulletin Items)