The Financial Services Authority has proposed new rules for financial benchmarks following recommendations made in the Wheatley Review into LIBOR.
The Wheatley Review was conducted by FSA managing director Martin Wheatley after Barclays was found to have manipulated the London Interbank Offered Rate.
One of his recommendations was that, while LIBOR remained an industry-led activity, its submissions should be regulated by the Financial Conduct Authority, which will come into power next year.
Proposals in today's FSA consultation CP12/36 'The regulation and supervision of benchmarks' include benchmark administrators required to corroborate submissions and monitor for suspicious activity, clear conflicts of interest policies for those submitting rates and systems and controls.
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It would also introduce two new significant influence controlled functions under the FSA's Approved Persons Regime for the administrator and submitting firms.
The FSA hopes these changes would result in clear, robust rules which would give firms and employees comfort that the regulatory regime clarifies what is expected of them.
The FSA is also seeking feedback on the size of LIBOR panels and the continuing participation of firms on the panel.
Mr Wheatley, managing director of the FSA and chief executive designate of the FCA, said: "Confidence and trust are critical to financial markets. The disturbing events uncovered in the manipulation of the LIBOR have severely damaged that trust.
"Today's proposals will bring in clear rules for the setting and governance of benchmarks and are a key step in ensuring the integrity of LIBOR."

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