On 12 June 2014, HM Treasury announced a joint review by the Treasury, the Bank of England and the Financial Conduct Authority (“FCA”) into the operation of the wholesale financial markets, called the “Fair and Effective Markets Review”. The Review will focus on the regulated and unregulated wholesale markets where misconduct issues have recently arisen (fixed income, currency  and commodity markets, including related derivatives and benchmarks). The scope of the Review will cover trading practices, the regulatory perimeter, impact of recent and forthcoming regulation and supervision. It is anticipated that the Review will result in recommendations, to be published by June 2015. A consultation in relation to the Review will be launched in the Autumn. The Government intends to take interim measures such as (i) extending the LIBOR regulation to cover further benchmarks and to provide for criminal sanctions for LIBOR manipulation; (ii) extending the Senior Managers and Certification Regime to non-UK firms (about which, see below); and (iii) expanding the UK criminal regime for market abuse.

HM Treasury’s announcement is available at:

https://www.gov.uk/government/news/fair-and-effective-markets-review- announced-by-chancellor-of-the-exchequer.