The UK’s Financial Conduct Authority (FCA) has welcomed the Financial Services Bill introduced in Parliament, which it believes will offer high standards and clarity for firms.
One of the aspects the regulator is particularly happy with is the Bill’s provisions to amend the Benchmark Regulations, which helps manage and support a wind-down of critical benchmarks such as LIBOR.
In a statement, the regulator said, “This is an important milestone, but we urge market participants to maintain their focus on the transition away from LIBOR by the end of 2021. We encourage those impacted to read our Statement and related publications of 23 June for more information.”
The FCA’s previous statement outlines the existing critical benchmark is not representative of the market and encouraged people to amend contracts to move away from LIBOR.
With the changes to the regulation, the FCA will have the power to protect those unable to amend contracts in this way by directing the administrator of LIBOR to change the methodology used to compile the benchmark if it would protect consumers and market integrity.
The new Financial Services Bill also includes the prudential regulation of investment firms, a new route for overseas funds to market to retail investors, and a framework for the regulatory relationship with Gibraltar.
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