The UK Financial Conduct Authority (FCA) announced on Friday that it officially recognizes the updated FX Global Code updated by the Global Foreign Exchange Committee. According to the press release, it also recognizes the revised Global Precious Metals Code outlined by the London Bullion Market Association.
Both codes establish a series of good practices to follow in both forex and precious metals covering senior managers and those who fall under the certification regime (SM&CR). “Behaviour that is in line with an FCA recognised code will tend to indicate a person subject to the SM&CR is meeting their obligation to observe ‘proper standards of market conduct’ in relation to unregulated markets (FSMA, UK legislation and FCA rules and guidance outline proper standards of conduct in regulated markets),” the British financial regulator said.
The FCA pointed out that last look practices were not consistent with the codes, as well as pre-hedging practices previously established. “This includes practices where market participants do not have appropriate controls to monitor potential conflicts of interest and do not have controls in place to limit access to confidential information relating to anticipated orders,” the FCA added about the pre-hedging matter.
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Adhering to ‘Clear and Transparent’ Disclosures
“More broadly, those who are signatories to the FX and PM Codes will need to make clear and transparent disclosures to market users to explain how their orders will be handled,” the watchdog cautioned.
In September, The FCA called off strengthening the supervision of online advertising of crypto-related products and services on Monday. The British regulatory watchdog has been concerned about the constant flooding of ‘problematic content’ that does not offer value to investors. Moreover, the FCA had been actively asking to assess the feasibility to find the right balance on regulating the environment, and at the same time, providing a good scenario for the crypto companies to develop their businesses in the country.