The Governor of the Bank of England is slated to launch a new City body with a remit to foster tighter standards across financial markets on the heels of a number of debilitating trading scandals and manipulation settlements estimated in the billions.
As a result of the recent transgressions, Mark Carney will create the Fixed Income Markets Standards Board (FMSB), part of the Fair and Effective Markets Review (FEMR), which was initiated last year by Chancellor George Osborne, according to a Sky News report.
Leading the FMSB on an interim basis will be Elizabeth Corley, the chief executive of Allianz Global Investors, who will be serving as the chair of the group. Her primary directorate will be melding the City’s response to the FEMR.
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However, for now it appears that the FMSB is unlikely to have any formal and binding regulatory powers. The organization itself will be funded by industry practitioners, who provide fixed income, currencies and commodities (FICC) services to corporate clients.
Despite the lack of formal authority, Mr. Carney attests that the organization will play a crucial role in assisting with the purging of the City’s numerous scandals, by acting as an intermediary between suppliers and users of wholesale banking services.
“It is going to say some quite significant things about what the scope of regulation should be for asset classes that historically have not been heavily regulated,” noted Martin Wheatley, Chief Executive of the Financial Conduct Authority (FCA) and co-chair of the review, in a recent interview on the new panel.