rules and regulations written on folder

Regulators in the U.K. launched a consultation on Friday on oversight and conduct standards for firms that administer financial benchmarks.

The U.K.’s Financial Conduct Authority (FCA) published a paper that explores how to extend its regime that sets governance and accountability standards for FCA-regulated firms to benchmark administrators, which will come under its oversight in December 2020.

The FCA initially developed new standards in the wake of the financial crisis and the LIBOR scandal, among other episodes of industry misconduct, in an effort to reduce harm to clients and “strengthen market integrity by making individuals more accountable for their conduct and competence.”

Among other things, the proposals published on Friday would automatically classify benchmark administrators as “core” firms, but they also include provisions that would tailor the rules for certain commodity benchmark administrators.

“Benchmark administrators play an important role in financial markets. As with all other firms offering regulated financial services, it is important that benchmark administrators have healthy cultures and high standards of personal conduct,” said Christopher Woolard, executive director of strategy and competition at the FCA.

“Our proposals seek to ensure appropriate accountability for senior managers at these firms,” he added.

Comments on the proposals are sought by Feb. 28, 2020.

The FCA is aiming to finalize its approach by the third quarter next year.