On 13 April 2016, the Financial Conduct Authority (the "FCA") published its interim report on the investment and corporate banking market study.
The FCA began a market study into investment and corporate banking on 22 May 2015. This market study focused on choice, transparency, bundling and cross-subsidisation in debt and equity capital markets, and mergers and acquisitions. The market study also focused on the links between competition in these primary market services and related activities such as corporate lending and broking and ancillary services.
This interim report highlights the FCA's current conclusions stating that, while many clients feel well-served by primary capital market services, there were also some areas where improvements could be made to encourage competition. There was a particular concern around cross-subsidies in the universal banking model between corporate banking and investment banking, as well as specific market practices such as syndication and reciprocity. The FCA suggests some possible remedies for the issues identified.
The FCA expects to publish its final report in summer 2016.
The interim report can be accessed here:
http://www.fca.org.uk/your-fca/documents/market-studies/ms15-1-2-interim-report
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