Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent discussions he has had with the European Securities and Markets Authority on the efficacy of current regulations to protect against the manipulation of the financial markets.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Treasury is in regular close contact with the FCA and the Prudential Regulatory Authority (PRA) on all issues relating to financial market conduct.
Following benchmark cases on LIBOR, Foreign Exchange and Gold, the government passed legislation to regulate benchmark activities in UK. The administrators and submitters to eight benchmarks, including LIBOR, are now subject to the Financial Conduct Authority’s (FCA’s) standards of governance, controls, accountability, management of conflicts of interest and record keeping. This domestic regime will be superseded by the EU Benchmark Regulation when that enters into force.
The European Parliament and the Council of the EU reached a compromise on an EU Benchmark Regulation on 24 November 2015. The Regulation brings in a set of rules to ensure that benchmark providers in the EU have prior authorisation and are subject to supervision, in line with internationally agreed principles drawn up by the International Organization of Securities Commissions (IOSCO).
The government regularly engages with all the relevant European institutions to ensure that European-level regulations are strong and effective.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent discussions he has had with financial regulators to ensure that regulations on fixing the rates of the London Interbank Offered Rate are better enforced.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Treasury is in regular close contact with the FCA and the Prudential Regulatory Authority (PRA) on all issues relating to financial market conduct.
Following benchmark cases on LIBOR, Foreign Exchange and Gold, the government passed legislation to regulate benchmark activities in UK. The administrators and submitters to eight benchmarks, including LIBOR, are now subject to the Financial Conduct Authority’s (FCA’s) standards of governance, controls, accountability, management of conflicts of interest and record keeping. This domestic regime will be superseded by the EU Benchmark Regulation when that enters into force.
The European Parliament and the Council of the EU reached a compromise on an EU Benchmark Regulation on 24 November 2015. The Regulation brings in a set of rules to ensure that benchmark providers in the EU have prior authorisation and are subject to supervision, in line with internationally agreed principles drawn up by the International Organization of Securities Commissions (IOSCO).
The government regularly engages with all the relevant European institutions to ensure that European-level regulations are strong and effective.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether record keeping regulations relating to financial services apply to organisations offering third party data storage to banks.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
Authorised firms, such as banks, must be able to meet their regulatory requirements even when relying on a third party for the performance of operational functions. The firm must make available to the regulator all information necessary to ensure the regulator is able to supervise the compliance of the outsourced activities with the regulatory requirements, including those on record keeping.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Financial Conduct Authority is taking to ensure that (a) traders and (b) banks keep a record of their communications on financial services.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what range of fines can be levied for breaches of record-keeping regulations relating to financial services.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent discussions he has had with the Financial Conduct Authority on the use of the financials service messaging platform Symphony.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Chancellor has had no communications with the Financial Conduct Authority (FCA) in regards to the messaging platform Symphony
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Financial Conduct Authority is taking to enforce the 2014 revisions to the 2003 EU market abuse directive.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Financial Conduct Authority takes to ensure that banks comply with record-keeping regulations.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the EU's Market in Financial Services Directive in (a) improving record-keeping by banks and (b) tackling potential abuse and manipulation of the financial markets.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.
Asked by: Joan Ryan (The Independent Group for Change - Enfield North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for how long the Financial Conduct Authority requires banks to retain data records relating to financial services.
Answered by Harriett Baldwin - Shadow Minister (Business and Trade)
The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.
In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.
The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.
The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.