One individual at a firm that provides benchmarks said: "The imposition of draconian measures like the fines will not act as incentives for firms to contribute to key EU benchmarks. Some market participants have argued privately that the penalties would be large for an administrating body such as an index provider or trade association and that firms might be deterred from participating in the benchmark-setting process as a result. A regulatory structure like this, with its potentially large fines, will only work if it helps administrators to persuade members to improve, and if the industry and the public alike have confidence in it." Timothy Dutton QC, head of Fountain Court barristers' chambers, said: "To bring in penalties against an administrator of a benchmark is taking regulation in a new direction. ![]() ![]() The proposed regulation on benchmarks, expected to be published in July, was drawn up in the wake of last summer's Libor scandal, when several banks were alleged to have rigged the key lending rate.
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