PARLIAMENTARY WRITTEN QUESTION
Financial Markets: Software (10 February 2021)

To ask the Chancellor of the Exchequer, whether the Government has plans to bring forward legislative proposals to update regulations on the trading of financial instruments and assets through mobile applications to prevent unfair practices and price manipulation by those means.

Asked by:
Taiwo Owatemi (Labour)

The Financial Conduct Authority (FCA) is the UK’s financial markets conduct regulator and is responsible for protecting consumers, ensuring market integrity and promoting effective competition

As set out in the FCA’s statement of 29 January, broking firms are not obliged to offer trading facilities to clients and may withdraw or suspend services if it is necessary or prudent to do so. The FCA statement also said that they would take appropriate action wherever they see evidence of UK firms or individuals causing harm to UK consumers or markets.

The Government recognises that the pace and creativity of innovation in UK financial services creates new opportunities for businesses and consumers to participate in markets through technologies such as app-based platforms. However, investors should be aware that investing in securities comes with risks. The FCA’s statement of 29 January noted that any losses that result from such investments are unlikely to be covered under the Financial Services Compensation Scheme.

Answered by:
John Glen (Conservative)
26 February 2021