Commenting on the Chancellor’s expected announcement to strengthen the regulation of the foreign currency market, Bill Michael, EMA head of financial services at KPMG, commented:
“I am encouraged that the Chancellor is coming out with these tough measures now. It is crucial for our whole economy that London takes the lead on this issue and I am delighted that the Chancellor is doing just that.
“The foreign exchange market is huge and affects our everyday lives much more than most people imagine. It impacts everything we buy and sell as a country – from the cars we drive, to much of the food we buy in the supermarket to almost all of the clothes we wear. It is the oxygen for all cross border trade and London is its global capital.
“Light regulation is clearly not enough for a vital market like foreign exchange. We need greater transparency and clear criminal consequences around any intent to manipulate any market. Banks and their traders need to know that any rotten behaviour will not be tolerated.
“Following the fallout from LIBOR, banks have taken steps to enhance trader supervision and to demonstrate they are acting responsibly and in the best interests of their customers. This strikes at the heart of what Sir Richard Lambert is trying to achieve with the Banking Standards Council, which I see as another major step toward restoring trust in our banking sector.”
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.