THE banking sector has played down the need for radical reforms in its submissions to a review of capital markets.
In its submission, the banking industry said that the financial sector needed to do more to root out and register “bad apples”. However, the industry said it would be difficult to license wholesale banking as a profession, and it was also unclear if doing so would prevent further abuses. The response from the Market Participant Panel to the Fair and Effective Markets Review which was established by Chancellor George Osborne was published on its website. Recommendations from the panel broadly focused on the need to improve internal codes of conduct for fixed income, commodities and currency trading (FICC), rather than recommending heavier outside regulation of banks, investment funds and other businesses.
The review was launched last year by regulators and the Government, who were worried that revelations about the rigging of interest rate and currency market benchmarks would undermine London’s role as a financial centre.
“We do not consider that FICC markets are fundamentally or irretrievably broken and in need of significant structural reform,” the panel said.
It said that the Financial Conduct Authority’s Approved Persons Register should be developed to allow more swapping of information.