Simon Appleton, Director of Regulatory Consulting at Kinetic Partners, a division of Duff & Phelps comments on the news that The Serious Fraud Office (SFO) is investigating liquidity auctions held by the Bank of England during the financial crisis:
“The integrity of all markets -equities, credit, interest rates, commodities and FX - is of paramount importance to the restoration of confidence in the UK financial system. This investigation, as well as the ever increasing transparency of these markets through the introduction of tighter regulation (EMIR, MiFIR and MAR), should, over time, go a long way to restoring that confidence.
“Increasing regulation alone won’t be enough. Culture and remuneration policies must change and work hand in hand with regulation to improve the integrity of the industry.”
