Martin Wheatley is managing director of the FSA and CEO designate of the Financial Conduct Authority (FCA), who was appointed to review the structure and management of Libor.
According to the new proposal, the benchmark administrators will have to confirm submissions and monitor for any doubtful activity.
The firms involved in providing data to benchmarks will be required to have a clear conflicts of interest policy and appropriate systems and controls, which will provide them clear picture about regulatory requirements.
Under the FSA’s Approved Persons Regime for the administrator and submitting firms, the two new influence controlled functions will also be created.
Commenting on its recommendations, Wheatley said, "Today’s proposals will bring in clear rules for the setting and governance of benchmarks and are a key step to ensuring the integrity of LIBOR."
Libor will initially remain as the only ‘regulated benchmark’ in the UK.
In order to ensure fair implementation of interbank lending rates, the UK watchdog has also requested market participants to provide their opinion as to how to best broaden the participation in LIBOR panels.
