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UK Government out to blitz abuse in financial services

THE UK Government today announces more steps to clamp down on abuse in the financial services sector and raise standards to protect the public.

GEORGE OSBORNE: He is set to lay out his terms tonight.
GEORGE OSBORNE: He is set to lay out his terms tonight.

The regulatory and enforcement scheme will be extended and a joint review undertaken by the Treasury, the Bank of England and the Financial Conduct Authority into the way key wholesale financial markets operate.

The Coalition will start with taking action domestically, including:

* Extending the new legislation the Government put in place to regulate LIBOR to cover the foreign exchange, fixed income and commodity markets and will include new criminal sanctions.

* Extending the Senior Managers and Certification Regime to cover all banks that have a presence in Britain by bringing in foreign banks that have branches here.

* Expanding the tough UK criminal regime for market abuse; as part of this, the UK will not opt into EU rules as the Treasury believes the UK's will be as strong if not stronger than those overseen by Brussels but this move will preserve flexibility to reflect specific circumstances in the UK's globally important financial sector.

Consultation on these steps will begin in the autumn.

The Fair and Effective Markets Review will consider the scope of regulation, the role of industry standards and the need for additional supervisory resources to address any issues that arise.

Chancellor George Osborne is expected to say in his Mansion House speech tonight:

"The integrity of the City matters to the economy of Britain. I am going to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them."

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