London gold market wholesalers are looking at forming a new body of representatives to deal directly with issues relating to the operations and taxation of the UK bullion industry, sources told S&P Global Platts.
There are around 10 wholesale entities currently in negotiations to set up the new body.
One source said the purpose of the body would be to deal directly with any issues facing the wholesale coin and bar market in the UK.
"There's a lot of confusion around current taxation, and the impact Brexit will have on the market," said one senior source. "This body will be formed to lobby for clarity and consistency."
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Currently the main UK trade body representing the precious metal industry is the London Bullion Market Association.
Sources said that as most interested parties are already existing LBMA members the intention is not to go against the long-standing trade body turned proxy-regulator.
"There is clearly merit in UK physical bullion traders forming an association where protocols around trading metals here in the UK can be shared with regards to such matters as KYC, AML, tax and security issues," said a second senior City of London bullion source.
"The existing bodies are primarily concerned with the interbank market and topics related to the international bullion market, while local trader's issues are not adequately covered in that forum," he added.
The LBMA declined to comment Thursday.
No firm details were given when the new trade body will be formed, although discussions are ongoing to who should be members and how that should be defined.
--Ben Kilbey, email@example.com
--Edited by Jonathan Loades-Carter, firstname.lastname@example.orgPlatts Market Data - Metals
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