BoE publishes FEMR update

BoE, FCA and Treasury have published the progress report on the Fair and Effective Markets Review. It says significant progress has been made towards the recommendations. Key conclusions are that:

  • the work on extending the SMCR will achieve the policy intent of the accountability framework already in place for PRA regulated credit and investment institutions;
  • initiatives are helping to raise standards in global FICC markets;
  • BoE and FCA are supporting initiatives that look forwards to identify and mitigate risks;
  • FCA is looking to be more forward-looking and pre-emptive in its supervisory approach and is using its new competition powers by monitoring and acting on potential anti-competitive structures or behaviour; and
  • the actions of the UK regulators in addressing benchmark regulation to counter manipulation of benchmarks, acting with market-led reform.

Industry should now take a leading role in making sure infrastructure keeps pace with innovation.  The regulators will continue to focus on their priorities and Treasury will keep under review the open recommendations.