Market Virtues and Vices


In June 2014, the Chancellor of the Exchequer and the Bank of England announced the formation of the “Fair and Effective Markets Review” (Review). The impetus for the formation of this committee was to respond to: “The scale of misconduct seen in recent years [that] has both damaged public trust and impaired the effectiveness of these important markets. The lack of firm governance and controls, acceptable standards of market practice and a culture of impunity all contributed to a process of ‘ethical drift’, leading to huge fines, reputational damage, diversion of management resources and the reining in of productive risk taking.”