Regulator unveils new LIBOR oversight rules

The Financial Services Authority has finalised new rules and regulations for financial benchmarks as it attempts to "bring integrity" back to the London Interbank Offered Rate.

Following the recommendations made by the Wheatley Review and a subsequent consultation by the FSA itself, the regulator has finalised proposals that will tighten LIBOR supervision. The Wheatley Review suggested LIBOR activities be brought within the scope of statutory regulation. The FSA's own proposals, outlined today, 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 control...