Steps to clean up capital markets and prevent abuse announced by Bank of England governor Mark Carney last night have been welcomed by the UK buy-side trade body the Investment Association.
In his annual Mansion House speech to top executives in the City of London, Carney laid out plans to create a FICC Market Standards Board (FMSB), which will drive higher standards in capital markets after the financial crisis and a string of scandals have tarnished the reputation of London as a financial center.
Establishing an independent board to look at market standards was one of the recommendations made by the Market Practitioner Panel, which is chaired by Investment Association board director Elizabeth Corley.
The Investment Association said it will work with the FMSB and othermarket participants to ensure market integrity and good conduct, which it believes will improve outcomes for savers and investors.
Daniel Godfrey, chief executive of the Investment Association, said: "The Investment Association and our members are committed to the success of the FICC Market Standards Board because success will ensure better outcomes for savers, the companies in which we invest and the economy. 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."