FSA finalises proposals for the regulation and supervision of benchmarks

25 March 2013

The regulator has finalised new rules and regulations for financial benchmarks. This follows the recommendations of the Wheatley Review of the London Inter-Bank Offered Rate (Libor).

The FSA has now finalised proposals for the regulation and supervision of specified benchmarks, such as Libor, implementing a key recommendation of the Wheatley Review. The key proposals include:

• benchmark administrators will be required to corroborate submissions and monitor for any suspicious activity;
• those submitting data to benchmarks will be required to have in place a clear conflicts of interest policy and appropriate systems and controls. This will result in clear, robust rules which will give firms and their employees comfort that the regulatory regime clarifies what is expected of them; and
•  two new significant influence controlled functions created under the FSA’s Approved Persons Regime for the administrator and submitting firms.

Martin Wheatley, CEO designate of the FCA, said: “Confidence and trust are critical to financial markets. That trust has been eroded by the Libor scandal and the recent enforcement action against several banks. These new rules today should help restore that faith and bring integrity back to Libor.”

Press release

Press release for Policy Statement

Policy statement

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