Off the back of its new competition remit the
Financial Conduct Authority in July 2014 launched a review of
competition in the wholesale financial services sector. This
briefing focuses on the thinking behind, and scope of, the review
including a look at Markets and Market
Infrastructure.
Rationale Behind Review
With regulatory bodies such as the European Commission
commencing investigations in the credit default swaps' market,
reviewing FOREX manipulation and LIBOR/EURIBOR fixing, the
interplay between financial services and competition has noticeably
increased.
When the FCA was established last year a new era began when it
came to the regulation of UK financial markets. Now armed with a
competition remit, part of the FCA's objectives are to promote
effective competition for consumers in regulated financial services
markets. As of April 2015, the FCA will have increased powers
alongside the Competition Markets Authority to enforce competition
in financial
