We considered your feedback from our consultation and are now outlining our framework for regulating and supervising benchmark activities. In the paper, we summarise the responses we received to our consultation and we set out our view of those responses. We also present the Handbook text (our rules and guidance) that applies to benchmark administrators and submitters to benchmarks.
This will be of particular interest to the administrator of LIBOR and the LIBOR-contributing banks. The PS should also be reviewed by firms that administer or sponsor other benchmarks and firms that contribute information to benchmarks.
Any firms or persons who regularly use benchmarks may also benefit from reading this PS.
Our new rules will come into force on 2 April 2013, immediately after the cutover to the UK’s new regulatory structure. We acknowledge that this only allows a short period for firms to implement the new rules and have included provisions to ensure a smooth transition for the individuals nominated to become controlled functions.
As we noted in our Consultation Paper, we intend to conduct a thematic review of the LIBOR-submitting firms’ compliance with these regulations, within the first year of regulations coming into force.
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