In 1993, responding to concern that the wholesale financial markets were developing faster than the law regulating the activities of those markets (with potentially harmful consequences for financial stability) the Financial Law Panel (“FLP”) was established. It was hoped that the FLP would provide a useful conduit between the City and Westminster. However, by 2001, it was perceived that the FLP had become distant from the main issues affecting the markets, and it was disbanded in March 2002.
Industry participants, regulators and legislators were keen that London continue to have an organisation in place to identify and analyse areas of legal uncertainty/misunderstanding affecting the wholesale financial markets, and so the Financial Markets Law Committee was established at the Bank of England (the FMLC always been independent from the Bank of England and any views it expresses should be understood as its own).
The Financial Markets Law Committee incorporated as an independent body in November 2013, and in December 2015 the Charity Commission accepted the FMLC's application to register as a charity.