ABOUT THE FMLC
Terms of Reference
The role of the Financial Markets Law Committee is to identify issues of legal uncertainty, or misunderstanding, present and future, in the framework of the wholesale financial markets which might give rise to material risks, and to consider how such issues should be addressed. It will also act as a bridge to the judiciary to help UK courts remain up-to-date with developments in financial markets practice.
Some element of legal uncertainty is inevitable in financial markets that are international, competitive and innovative. Although the UK framework of law for financial markets is highly developed and robust, new ideas or practices can sometimes raise legal uncertainties as to how the law will apply, on occasion based on misunderstandings about existing law.
In addition, proposals (whether at home or abroad) for new law or new regulations, can give rise to uncertainties or misunderstandings when specific features of the wholesale market practice have not been fully understood by a legislator or other public authority.
The establishment of the Committee reflects the view, widely held across the wholesale financial markets, that London should continue to have arrangements in place to identify and analyse areas of legal uncertainty or misunderstanding affecting those markets. The Committee is impartial and made up of senior lawyers and representatives of financial market participants, authorities, bodies and associations.
Once identified, many issues will be addressed by the publication of an objective paper that outlines the issue(s) identified and suggests how the relevant legal uncertainty might be eliminated or ameliorated. The FMLC will seek to raise the profile of such papers with those who are best positioned to implement the recommended solutions.
The Committee was originally established by the Bank of England, however the FMLC is independent from the Bank and its view and any published materials cannot be taken to reflect the views of the Bank, or those of any other patron.
Terms of reference as of 21 August 2014