Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to improve regulation of the UK securities market.

The Government has consistently taken action to improve regulation of financial markets since 2010.

The Government put in place a new architecture for financial regulation through the Financial Services Act 2012, with the aim of delivering stability, protecting consumers and enhancing the integrity of financial markets. The Financial Policy Committee in the Bank of England is responsible for protecting and enhancing financial stability, while the Prudential Regulation Authority is responsible for the prudential regulation of deposit-takers, insurers and certain investment firms. The Financial Conduct Authority is responsible for protecting consumers, promoting competition, and enhancing integrity in markets.

Following findings of attempted manipulation of LIBOR in summer 2012, the Government took quick action to make the administration of, and contribution to this key financial benchmark, a regulated activity. Furthermore, on 12 June 2014 the Government announced further steps to raise standards of conduct in the financial system with a joint review by the Treasury, the Bank of England and the Financial Conduct Authority into the way wholesale financial markets operate. Led by Bank of England Deputy Governor for Markets and Banking, Minouche Shafik, the Review will run for 12 months, and will focus on those wholesale markets where the bulk of concerns about misconduct have arisen - fixed income, currency and commodity markets. The Terms of Reference for the Review have been published https://www.gov.uk/government/publications/fair-and-effective-markets-review-terms-of-reference/fair-and-effective-financial-markets-review-terms-of-reference