Central Bank of England

Central Bank of England.

Financial services policy – banking, financial stability, healthy level of competitiveness between companies etc.

Financial Conduct Authority (FCA) is responsible for fairness of financial services operated in UK such as mortgages, loan providers, pensions etc. Main purpose of FCA is to make sure that companies trading fairly and not abusing public regarding prices. FCA also must to make sure that companies would not have monopolistic or hierarchical powers and competition between companies would remain on the healthy level.Regarding gold fixing scandal even if FCA did not get information leak from whistle-blowers, there was a big hint sent by German regulator BaFin which had opened an investigation on GDI for potential manipulation of gold price fixing. FCA should have opened an investigation on manipulation of information and public money. There was a clear suspicion that Gold Dust Industries plc having a window where they can abuse gold prices and set it higher for a shorter period of time (Anon., 2014). Barclays bank was involved in price fixing scandal in 2012. However back then FCA was looking at the problem much sharper as Barclays trader Daniel James was expelled and fined nearly £100000 for manipulating flaws in the bank system (Slater & Jones, 2012).Carless approach to GDI by FCA allows to assume that some FCA bodies might be involved into bribery act.

Clearly there is no competition as banks must to communicate with each other in order to set price of gold. For the reason that competition cannot be made in this industry banks should be watched with greater precautions. It is stated that FCA should step in if customers are being treated unfairly or if the companies creating the risk for the market. GDI had failed in both points therefore FCA should have opened an investigation to GDI rather than examine financial benchmarks (Lyala, 2013).

If GDA will continue having such a big room for keeping internal and external controls on such weak level eventually the company will collapse leaving its shareholders with empty pockets.

GDI owns two airports operating nationwide, it also owns CP FUTURES (CPF) referring to China. GDI also owns Morgan Commodities which is based in US. From given information it can be seen that GDI not only owns a banks but also has subsidiaries in quite few different nations. Therefore there is a big chance to face conflicts of national and global sizes. Due to changes in culture company will have to face conflicts between shareholders and bond holders as shareholders from different parts of the world will have different understanding about companies controlling, dividends etc. GDI will also face conflicts of changes in regulations and different culture individuals will have different requirements. For example Japanese would like to see more family members in the company as their culture beliefs that company must be treated as a family. Employees will face conflicts with employers as different countries has different working hours, brake times, salaries, motivations etc. Conflict between countries and public will worsen decision and strategy making progression and will create unsuitable results (Peters & Handschin, 2012).

  • Economy & Finance Papers
  • Microsoft Word 39 KB
  • 2017 m.
  • English
  • 10 pages (3340 words)
  • University
  • Edgaras
  • Central Bank of England
    10 - 1 votes
Central Bank of England. (December 8, 2017). https://documents.exchange/central-bank-of-england/ Reviewed on 21:34, January 22 2021