Investment banks join long list of City competition probes
BANKS are facing their 26th competition investigation in a decade as the City watchdog yesterday announced a new probe into the investment and corporate banking industries.
The Financial Conduct Authority’s (FCA) move adds to existing investigations into the current account and savings markets, the small business banking sector, and the wider wholesale markets, leaving banks worried that different authorities will make wildly varying and conflicting demands.
“We would urge the regulator to take into account the considerable and fast-moving changes that are currently taking place in wholesale markets,” said the British Bankers’ Association’s deputy chief Sally Scutt.
“It is also important that this investigation is aligned closely with the broader fair and effective markets review.”
Over the coming weeks, the FCA will narrow down the scope of its probe – currently, areas from equity and debt underwriting, to deposit taking, to advisory services to market trading are all in consideration.
If the regulator finds problems, it will investigate further over the next year.
No actions have been ruled out yet, so punishments could range from minor tweaks to business models, all the way through to breaking up the banks.