The FCA confirmed today under its code recognition process that it is recognising:
FCA has updated its ‘Recognising industry codes’ webpage to reflect this.
These voluntary market codes have been written and are owned by the industry to reflect their views of best practice. The FX Global Code is maintained by the Global Foreign Exchange and the Global Precious Metals Code is maintained by the London Bullion Market Association. Both Codes aim to promote integrity and effective functioning in the relevant market.
FCA recognised codes are useful for those subject to SMCR since behaviour in line with such a code usually indicates that a person is meeting their COCON 2.1 obligation to observe proper standards of market conduct in relation to unregulated markets. On this point, FCA has affirmed that last look practices that incorporate a delay that is additional to what is required to complete price and validity checks are not consistent with the Codes, nor are pre-hedging practices where market participants do not communicate their practice to clients in a way that enables the client to understand the possible impact on the execution of their order.
FCA emphasises that industry codes should not have the same status as FCA rules in regulated markets and that they are just one of many factors the FCA will take into account when considering enforcement.