Industry groups have welcomed the creation of a board set up by the Bank of England that aims to drive good conduct in “FICC” – or fixed income, currency and commodity – markets.
The Investment Association (IA), a UK fund management trade body, says the FICC Markets Standard Board (FMSB) will benefit all savers and investors.
The Bank of England’s Fair and Effective Markets Review published a final report yesterday, setting out 21 recommendations to help restore trust in the wholesale FICC markets in the wake of a number of recent high profile abuses.
The Association for Financial Markets in Europe (Afme) also welcomed the FMSB.
The IA says it will work with the board and all market participants to help ensure market integrity and good conduct. The aim is to aid the beneficiaries who use investment managers to meet their financial goals, such as retirement income.
The board was established due to a recommendation from the Market Practitioner Panel, chaired by IA board director, Elizabeth Corley, the global chief executive officer of Allianz Global Investors.
Daniel Godfrey, chief executive of the IA, says: “We look forward to working on the creation of the FMSB to make sure that it gets off to a great start, with sufficient teeth to get the job done.”
Simon Lewis, chief executive of Afme, also supports the initiative, saying that his organisation supports measures that raise standards, professionalism and accountability for individuals in the FICC markets.
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