Neena Gill MEP (Labour, West Midlands) and Labour MEPs, this week, voted for EU action to clamp down on rate-rigging following the LIBOR scandal.
As financial firms are still paying millions in fines for rate fixing, MEPs yesterday (19/05/2015) voted for new rules that will strengthen the accuracy and integrity of benchmarks used in financial instruments and financial contracts, like LIBOR, the London Interbank Lending Rate that determines the price of money.
The regulations will ensure contributors to benchmarks are subject to prior authorisation and on-going supervision; improve their governance and require greater transparency of how a benchmark is produced; and bring in appropriate supervision of critical benchmarks.
Neena Gill, Labour MEP, Member of the European Parliament economic and monetary affairs committee, said:
“We welcome the new regulation. The LIBOR scandal clearly demonstrates what unregulated benchmarks can lead to. I have heard from constituents in the West Midlands who lost tens of thousands pounds after the banks misold services to them at the height of the Libor Scandal. This simply isn’t acceptable when bankers continue to receive huge bonuses. "Financial benchmarks determine the level of mortgage payments of millions of households. Manipulating benchmarks amounts to stealing from investors and consumers and undermines confidence in markets.
"This is a proportional and balanced outcome. Transparency and supervision on the benchmark process have been increased and conflicts of interest will be tackled."
“The Commission expects a final agreement by the summer.”