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.