Background -

As we have previously reported, a Task Force of the International Organization of Securities Commissions (“IOSCO”) published a consultation on financial benchmarks on 11 January 2013 in response, in part, to recent controversies in relation to the setting of financial benchmarks, including LIBOR. The January consultation discussed concerns regarding the potential for inaccuracy or manipulation of benchmarks and considered issues such as appropriate standards for benchmark calculation, related governance issues and transparency and openness in the benchmarking process. Subsequent to the publication of the consultation, the IOSCO Task Force held stakeholder meetings and received over 50 comment letters.

On 16 April 2013, the IOSCO Task Force published a follow-up Consultation Report which sets out draft Principles for those involved in the administration of benchmarks and providers of information in connection with their determination. It also includes a feedback statement on the January consultation.