Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a650332
European regulators take action to safeguard Euribor
by Emma Dunkley on Jan 11, 2013 at 14:15
ESMA and EBA said another major concern is the lack of formal requirements for the Euribor panel banks to have adequate internal governance, a code of conduct and conflicts of interest management, in relation to the submission process.
The regulators also said the definition of Euribor is not clear, and that rates being quoted are not assessed properly against evidence from real transactions.
ESMA and the EBA have made a series of recommendations and will review the implementation of them within six months.
At the end of last year, the Financial Services Authority proposed new rules and regulations for financial benchmarks, following the recommendations of the Wheatley Review of Libor.
The FSA said it had considered the Wheatley review and the Treasury’s proposed amendments in designing an approach to regulate the setting of benchmarks and has issued a set of proposals.
These include ensuring benchmark administrators will be required to corroborate submissions and monitor for any ‘suspicious activity.’
It includes those submitting data to benchmarks to be required to have in place clear conflicts of interest policy and appropriate controls in place.
The proposals also recommend two significant influence controlled functions created under the FSA’s Approved Persons Regime for the administrator and submitting firms.
On top of this, the watchdog is seeking comments on ensuring the continuity of Libor and broadening participation in the rate.
News sponsored by:
Today's top headlines
More about this:
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Emma Dunkley on May 23, 2013 at 14:09