FEMR and Reconciliation: Difference between pages

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The Fair and Effective Market Review (FEMR) was a UK review of Fixed Income, Currency and Commodity (FICC) markets chaired by:
1.


:Nemat (Minouche) Shafik, Deputy Governor of the Bank of England,
''Accounting''.


:and co-chaired by Martin Wheatley, Chief Executive Officer, Financial Conduct Authority (FCA)
A quantified explanation of the differences between two related amounts.


:and Charles Roxburgh, Director General, Financial Services, HM Treasury.   
For example, an accounting reconciliation of reported operating profit to net operating cash flows.   


This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period. 


The Fair and Effective Markets Review was established in June 2014 with the objectives of identifying ways to reinforce confidence in the fairness and effectiveness of wholesale financial market activity conducted in the UK, and to influence the international debate on trading practices.
Each item contributing to the net difference being quantified within the reconciliation statement.


The Review published its final recommendations in June 2015.
Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.


A copy of the recommendations and progress report are available, at [https://www.bankofengland.co.uk/markets/fair-and-effective-markets Bank of England, FEMR.]
Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.




Commenting on the review, former ACT CEO Colin Tyler said,
2.  
:"Users of financial markets, such as non-financial corporates of all sizes, expect markets to be fair and hope they are also effective in enabling investment, funding and hedging of risk.  
:The ACT broadly welcomes the 21 recommendations of the FEMR."
:''The Treasurer, July/August 2015, p6''


A quantified explanation of the change in any balance, over a time period.


Sometimes abbreviated to 'rec'.


==See also==
*[[FICC]]
*[[FRAND]]
*[[FX Global Code]]
*[[UK Money Markets Code]]


[[Category:Ethics]]
== See also ==
[[Category:Financial_products_and_markets]]
* [[Bank reconciliation]]
* [[Full reconciliation]]
* [[Tax reconciliation]]

Revision as of 15:13, 20 August 2013

1.

Accounting.

A quantified explanation of the differences between two related amounts.

For example, an accounting reconciliation of reported operating profit to net operating cash flows.

This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period.

Each item contributing to the net difference being quantified within the reconciliation statement.

Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.

Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.


2.

A quantified explanation of the change in any balance, over a time period.

Sometimes abbreviated to 'rec'.


See also