Godi welcomes industry clean up with new code of conduct

 

The launch of a new set of guidelines that aim to direct best practice in the global foreign exchange (FX) markets has been welcomed by Godi Financial as the need for greater trust and transparency in the sector has been long awaited.

 

The new code of conduct, launched on 25 May by The Foreign Exchange Working Group (FXWG) under the Bank for International Settlements (BIS), comes after numerous scandals in the FX market. The code outlines 55 principles covering ethics; governance; information sharing; execution; risk management and compliance; and confirmation and settlement process.

 

Godi has been calling for more stringent and clear standards within the FX industry since the company was formed in 2012. Godi’s managing director, Paul Langley, claims too many firms have been taken advantage of as a result of poor FX practices and hopes the new guidelines will help eliminate such dishonest actions. 

 

Misconduct was highlighted earlier this year when numerous companies were mis-sold complex currency derivatives, which became dramatically more expensive due to the fall in the value of sterling following the UK’s vote to leave the European Union (EU).

 

Langley suggests the type of mis-selling alleged in these court filings has become commonplace in parts of the FX world as a result of complex products being sold to businesses without adequate knowledge and understanding of them. Such practices, he said, has created distrust, tarnishes the industry and leaves businesses out of pocket.

 

Langley commented:

“The mis-selling of currency derivatives, rigging FX markets, traders disclosing confidential information about client orders to third parties – there have been far too many instances of misconduct in the FX industry and it’s about time it was cleaned up.

“The new guidelines have been strongly supported by key players in the FX world, but my concern is the extent to which the guidelines will be followed. The key to their success will be adherence.

“Godi is a brand that has forged a reputation for outstanding service quality, and trusted, transparent market insights. We are proud to consistently hold transparency as central to our operations and we hope other FX companies will follow suit with the introduction of these guidelines. This will, in time, enable a reputation of professionalism and trustworthiness for the global FX sector to be established, which we all want to see.”

 

Godi looks to educate its clients and form long-term, transparent relationships with companies where any margins or fees it earns are fully disclosed. It also offers a free audit to companies where it will assess historic FX transactions and demonstrate any savings that could have been made. This approach aligns to Godi’s values of doing things differently through education, transparency and expertise, to set a new standard of service for global financial engagements.

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