(Clarifies who BBA wants to increase accountability for, para8)
* FICC traders would be required to hold qualification
* BBA also backs extension of accountability regime
* BBA says review a 'once-in-a-lifetime' opportunity
By Steve Slater and Matt Scuffham
LONDON, Feb 4 (Reuters) - Thousands of bond, currency andcommodities traders in London should have to pass an exam andobtain a new qualification to trade as part of attempts to raisestandards, Britain's bank lobby group said on Wednesday.
The British Bankers' Association (BBA) said a "licence totrade" qualification and tougher codes of conduct should beintroduced to strengthen trust in financial markets after aseries of damaging scandals.
The BBA said everyone involved in FICC (fixed income,currencies and commodities) markets should be required to passexams and be professionally qualified, although thequalification wouldn't need to be the same for all markets.
"This is a once in a generation chance to clean up financialmarkets -- we must seize it," BBA Chairman Anthony Browne saidin the group's response to the Bank of England and UKgovernment's Fair and Effective Market Review.
The government initiated a review of how to clean up theindustry after Britain's banks were caught up in a series oftrading scandals.
Barclays, Royal Bank of Scotland and LloydsBanking Group have been fined for the attempted manipulation ofthe Libor financial benchmark, while HSBC and RBS werefined for failing to stop traders from manipulating the foreignexchange market.
"Restoring trust to financial markets is hugely important tothe banking industry in the UK," said Browne.
The BBA said proposals to increase individual accountabilityfor senior managers should be extended to include all marketparticipants, excluding those in retail banking.
Bank of England Deputy Governor Minouche Shafik has saidtougher rules may be needed to stop the "anything goes" attitudeof traders uncovered in recent investigations. .
Shafik said last month the review would look at how to giveteeth to industry codes of conduct, such as by making themmandatory.
"We are trying to get at the individuals," Shafik said, asregulators seek to meet criticism from lawmakers that too fewbankers, rather than firms, have been brought to book forreckless behaviour in the run up to the financial crisis.
The review is due to make recommendations in June and likelyto focus on bolstering codes, as much of the legislative work isalready in the pipeline at the European Union level.
The public consultation on the review closed last Friday. (Additional reporting by Huw Jones; Editing by RaissaKasolowsky and Mark Potter)
Barclays (BARC)
HSBC Holdings (HSBA)
