Brexit Won’t Halt U.K. Push for Improved Market Conductby
BOE publishes update to Fair and Effective Markets Review
Regulators say momentum on progress ‘must not be lost’
Britain’s decision to leave the European Union won’t halt a drive to better regulate financial markets and improve conduct.
In an update to the BOE’s Fair and Effective Markets review, the U.K.’s top officials said the importance of their work “is not diminished by the vote to leave the European Union and the implementation of these recommendations will be reviewed in the context of the development of the U.K.’s new relationship.”
The foreword, written by BOE Deputy Governor Minouche Shafik, Financial Conduct Authority head Andrew Bailey, and Charles Roxburgh at the U.K. Treasury, also said that initial momentum “must not be lost.”
“It took years for the ‘ethical drift’ that resulted in misconduct to occur and it will take time to build new ethical norms in financial markets,” they said in the review published Thursday. “Progress is at a critical point.”
The report provides an update of recommendations made a year ago as part of the review. They included a new code of practice for individuals and firms, and longer jail terms for infractions to tackle what Governor Mark Carney called at the time a “depressing frequency” of misconduct.