Chancellor George Osborne has confirmed the Fair and Effective Markets Review will review the way financial markets operate in a bid to “raise standards of conduct” in the financial system.
According to a statement from HM Treasury, the review will focus on fixed income, currency and commodity markets where “the bulk of concerns about misconduct have arisen”.
The review will run for 12 months and will be led by Bank of England deputy governor for markets and banking Minouche Shafik, with Martin Wheatley, the chief executive of the FCA and Charles Roxburgh, director general, financial services, HM Treasury as co-chairs.
Mr Osborne said: “The integrity of the City matters to the economy of Britain. Markets here set the interest rates for people’s mortgages, the exchange rates for our exports and holidays, and the commodity prices for the goods we buy.
“I am going to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them.”
A panel of market practitioners chaired by Elizabeth Corley, chief executive of Allianz Global Investors, will also be appointed.
Mr Wheatley added: “Confidence and trust are critical to financial markets – and robust, reliable benchmarks are the bedrock of market integrity. I welcome this review, which will ensure that key markets operate with the highest standards of integrity.”
