Striking the right balance between fairness and effectiveness to rebuild public trust in capital markets
Following the financial crisis, the capital markets industry has taken steps to rebuild public trust through new regulation. The industry is striving to improve conduct and preserve the effectiveness of markets, while increasing fairness.
The UK’s Fair and Effective Markets Review (FEMR), commissioned by the Chancellor in 2014, is just one of these measures. It puts the onus on the industry to restore confidence in a sustainable way.
FEMR provides four near-term actions:
To achieve these the industry will need greater transparency, tech-driven efficiency and better global alignment.
Ultimately, it will be the industry itself as the end-user that will be the arbiters of fairness and by capturing its feedback, we can ensure the market is operating as intended.
The prize is being able to offer services that are fair and effective, while also being profitable.