Synthetic Libor powers give FCA ‘massive discretion’
Consultation on use of new benchmark clout may not limit safety-net rates to economic realities
The UK financial regulator’s new powers for averting chaos in Libor’s stickiest contracts may be more potent than some envisaged, as two amendments set to be inserted into the UK’s iteration of the European Union Benchmarks Regulation would allow the Financial Conduct Authority to alter the methodology underpinning flimsy rates without limitation.
In a consultation launched on November 18 about how it would exercise clout afforded under the Financial Services Bill currently passing through the
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