Bank of England's Carney says many financiers unaware of ethics

LONDON, June 26 (Reuters) - Bank of England Governor Mark Carney said on Friday that many people working in finance remain unaware of the ethical standards expected of them and the need for their conduct to exceed that required by the letter of the law.

The BoE is stepping up its regulatory scrutiny of senior figures in the finance industry in the wake of scandals hitting London's trillion-dollar markets for foreign exchange and interbank lending.

"A lot of people in these markets didn't really know - and probably still do not know - what is expected of them because it hasn't been adequately defined in everyday language," Carney said at a conference in the City of London (LSE: CIN.L - news) .

He also reiterated recent warnings that financial markets should be prepared for liquidity to dry up -- especially in fixed income markets -- in response either to central bank actions or more fundamental factors. (Reporting by David Milliken; Editing by Mark Heinrich)