Question

To ask the Secretary of State for Business, Innovation and Skills, whether the Competition and Markets Authority is conducting an investigation into allegations of cartel behaviour by banks in (a) foreign exchange markets and (b) other capital markets.

I am unable to comment publicly on any activity the Competition and Markets Authority (CMA) may or may not be conducting into allegations of cartel behaviour in this area, including any intelligence it may have received or reviewed in relation to any particular allegations.

The CMA has been setup up by the Government as the UK’s independent competition authority and has extensive powers to pursue cartel and criminal behaviour. The Financial Conduct Authority (FCA) will also obtain concurrent competition powers in financial services on 1 April 2015.

As examples of the extensive powers available to the CMA and the FCA, the FCA has publicly stated that it is currently conducting an investigation relating to trading on the foreign exchange market and in November last year issued record levels of fines on banks in relation to their activities in the foreign exchange market.