IOSCO (the International Organization of Securities Commissions) has now published a report on the second review of the implementation of its Principles for Financial Benchmarks by the administrators of the benchmarks collectively known as the IBORs: the Euro Inter-Bank Offer Rate (EURIBOR); the London Inter-Bank Offer Rate (LIBOR); and the Tokyo Inter-Bank Offer Rate (TIBOR). It was prepared by a review team, comprising members of the IOSCO Board-level Task Force on Financial Market Benchmarks and the IOSCO Assessment Committee.
The reviewsets out the IOSCO findings into the direction of travel taken by the administrators towards implementing the recommendations of the first review. It finds that all three administrators have been proactively engaged in addressing the issues raised by the first, which had found an important distinction between the progress made on implementing the Principles related to the quality of the benchmark and that on implementing the Principles related to governance, transparency and accountability.
In regard to the Principles on governance, transparency and accountability, the second review found that a majority of the recommendations made by the first review had been implemented by the administrators. The review saw evidence that all the administrators had developed and improved their policies and procedures in a number of areas including conflicts of interest, consultation with stakeholders and internal oversight.