Confirmation That Regulator Is Joining Others In Assessing Area

The Financial Conduct Authority (FCA) has confirmed it has launched investigations into several firms related to the foreign exchange market.

In a statement released the week, the regulatory body has confirmed that it has joined over similar organisations across the globe in beginning investigations into the market and the way it currently operates.

The FCA is not expected to comment any further as it continues to investigate the area.

A spokesman said: “We can confirm that we are conducting investigations alongside a number of other agencies both in the UK and abroad into a number of firms relating to trading on the foreign exchange market.

"Our investigations are at an early stage and it will be some time before we conclude whether there has been any misconduct which will lead to enforcement action."

Expert Opinion

"There is speculation that these investigations could be as wide ranging and extensive as the LIBOR investigations. <br/> <br/>"Whether the FCA or other agencies conclude that there was actual or an attempted manipulation remains to be seen. Any FCA investigation that goes back a long period in time can take months or years to conclude and is disruptive and costly for any business. <br/> <br/>"At worst individuals could be drawn into the investigation and if misconduct is proved face fines or bans from working in the financial services industry – or at worst face criminal prosecution."