FCA-Recognised industry Codes

Question 1

What are the four main FCA “recognition codes” set out by the FCA for unregulated financial markets and activities?

Answer 1

1. FX Global Code
2. UK Money Markets Code (MM)
3. Standards of Lending Practice for business customers
4. Global Precious Metals Market Code

Question 2

Under the FCA “recognition codes” set out by the FCA for unregulated financial markets and activities -

what is the FX Global Code?

Answer 2

1. Maintained an updated by the Global Foreign Exchange Committee
2. Set global principles of good practice standards in the foreign exchange (FX) market.
3. Promotes integrity and effective functioning of the wholesale FX market.

Question 3

Under the FCA “recognition codes” set out by the FCA for unregulated financial markets and activities -

what is the UK Money Markets Code?

Answer 3

1. Maintain an updated by the Money Markets Committee
2. Set standards and best practice expected from participants in the deposit, repo and securities lending markets in the UK. (For activities like depositing money, borrowing or lending securities, or doing repo transactions (where one party sells a security and agrees to buy it back later).

Question 4

Under the FCA “recognition codes” set out by the FCA for unregulated financial markets and activities -

what is the Standards of Lending Practice for business customers?

Answer 4

1. Maintain an updated by the Lending Standards Board
2. Sets the benchmark/ standard for good lending practice in the UK
3. Outlines the way registered firms are expected to deal with their business customers throughout the entire product life cycle.

Question 5

Under the FCA “recognition codes” set out by the FCA for unregulated financial markets and activities -

what is the Global Precious Metal Market Code?

Answer 5

1. Prepared by the London Bullion Markets Association (LBMA)
2. Sets standards and best practice expected for market participants in the global OTC wholesale precious metal markets.