LONDON (Reuters) – Britain’s monetary watchdog is to meet with polling corporations to verify if personal polls for hedge funds want regulating throughout occasions just like the Brexit referendum marketing campaign.
FILE PHOTO: Andrew Bailey, Chief Executive Officer of the Financial Conduct Authority, July 6, 2017. REUTERS/Hannah McKay/File Photo
Andrew Bailey, chief government of the Financial Conduct Authority, has requested to meet the British Polling Council (BPC) and the sector’s voluntary oversight physique, the Market Research Society (MRS), to see how the FCA’s regulatory remit might work together with the sector.
“It would also be useful for this discussion to explore what, if any, actions may be required of BPC and MRS members,” Bailey stated in a letter to the polling corporations made out there to the media.
Parliament’s Treasury Select Committee has expressed considerations that in the course of the Brexit vote in 2016, polling corporations offered broadcasters with surveys whereas on the similar time promoting knowledge privately to hedge funds which might then commerce on the knowledge.
Sterling, for instance, fell sharply when it turned clear that the referendum consequence was in favor of leaving the European Union.
Nicky Morgan, chair of the Treasury Committee, advised the BPC in September that polling firms confronted a battle of curiosity that was not being managed. On Thursday she welcomed the FCA’s intervention.
“I have asked the regulator to update the committee on whether the current private polling rules are sufficient to mitigate the risk that market abuse rules could be breached, whether the BPC and MRS will take actions, and whether greater regulatory oversight may be needed,” Morgan stated.
BPC President John Curtice has dismissed Morgan’s views of the polling business and has challenged her to substantiate her claims or withdraw them.
“If, however, it is felt to be undesirable for a hedge fund to commission polls … because they might acquire an undesirable ‘trading advantage’ in undertaking their market activity, then perhaps it is their ability to commission such polls that needs to be regulated,” Curtice advised Morgan in a letter earlier this month revealed on the BPC’s web site.
The Alternative Investment Management Association, a hedge fund business physique, stated there was an unimaginable demand for exit polling knowledge and any dialogue of this difficulty ought to acknowledge that.
“Our members commit significant resources to understanding and complying with the law, and based on the advice AIMA have been given the organization is unaware of any laws that exist that would declare alternative data sets such as this as illegal,” AIMA stated.
Reporting by Huw Jones. Editing by Jane Merriman