Mark Carney, the governor of the Bank of England, announced looming harsher sentences for bankers guilty of market abuse in the U.K. on Wednesday.
The maximum sentences for those found guilty of market abuse should be extended to 10 years from seven years and more kinds of abuse should be subject to criminal charges, according to the bank's "fair and effective markets review," commissioned by Carney and published on Wednesday.
Senior managers at both banks and insurers should face new potential censures, as they will be held directly responsible for "failures in their areas of responsibility" according to Carney. These could include substantial fines if misconduct happens under their watch, although managers will not face criminal charges unless believed to be part of the conspiracy.
Carney gave a speech at London's Mansion House on Wednesday evening, in which he accused financial services companies of "ethical drift" and said that markets need a "social license" to operate.