Corporate banks will also face scrutiny about whether there is enough competition in the sector as part of year-long investigation by regulator
The Financial Conduct Authority will be given new competition powers to enforce action against financial firms from April 2015.
The FCA has launched a year-long investigation into whether there is enough competition in the investment and corporate banking sector. This will investigate into possible conflicts of interest and whether clients were getting value for money. The bundling of services by investment banks could make it difficult for new entrants to come into the market or for smaller players to challenge larger institutions, hence the enquiry. They have chosen this particular area because the benefits of effective competition in the market could be significant.
The UK is a global hub for investment banking, and this sector plays a crucial role in our economy, helping companies raise capital for investment, expansion and funding ongoing operations. The bundling of services by investment banks can make it difficult for new entrants to come into the market or for smaller players to challenge larger institutions.
