It is a matter of public record that the Bank of England has been conducting an internal review into allegations that Bank of England officials condoned or were informed of manipulation in the foreign exchange market or the sharing of confidential client information.
This extensive review of documents, emails and other records has to date found no evidence that Bank of England staff colluded in any way in manipulating the foreign exchange market or in sharing confidential client information. However, the Bank requires its staff to follow rigorous internal control processes and has today suspended a member of staff, pending investigation by the Bank into compliance with those processes.
The Bank of England does not condone any form of market manipulation in any context whatsoever. The Bank has today re-iterated its guidance to staff regarding management of records and escalation of important information. Those policies have been updated in recent months. In addition, the Oversight Committee of the Bank’s Court of Directors will lead an investigation to assess whether Bank officials were:
(i) involved in attempted or actual manipulation of the foreign exchange market (including the WMR FX benchmark),
(ii) aware of attempted or actual manipulation of the foreign exchange market , or (iii) aware of the potential for such manipulation or (iv) colluded with market participants in relation to any such manipulation or aware of any such collusion between participants;
(i) involved in the sharing of confidential client information
(ii) aware of the sharing of such information between participants for the purposes of transacting business in the foreign exchange market; or
(c) involved in,or aware of,any other unlawful or improper behaviour or practices in the foreign exchange market.
The Oversight Committee has appointed external legal counsel, Travers Smith LLP, to prepare a report. That report will be published in due course. Travers Smith has hitherto been supporting the Bank in its internal review.
No decision has been taken on disciplinary action against any member of Bank staff. The Bank continues to support the Financial Conduct Authority’s investigation into the foreign exchange market. In these circumstances, it would not be appropriate for the Bank to make any further comment on this matter.