FSA pegs benchmark regulation

With the government having backed the Wheatley Review recommendations on reforming Libor, the FSA is consulting on how benchmarks will be supervised. At first the only regulated benchmark in the UK will be Libor, but a framework will be in place that can be extended to cover other benchmarks in future. Potentially this could cover a host of benchmarks and indices, which has worried some industry participants that unsuitable instruments will be captured. This is certainly not imminent however and may not be likely.