On 31 July 2018, the FCA published a document on written arrangements for the establishment and the functioning of the supervisory college of LIBOR.
The FCA has been designated under article 40 of the Benchmarks Regulation (BMR) as the competent authority responsible for carrying out the duties under the Regulation in the UK. As the competent authority responsible for the supervision of the administrator of LIBOR, the FCA must establish a supervisory college.
Article 46 of the BMR provides that “written arrangements” must be put in place for a supervisory college. The written arrangements should ensure the effective exchange of information among the members of the supervisory college, and the coordination of their activities and supervisory measures. The document forms the written arrangements for the supervisory college in respect of LIBOR, and the FCA will be the chair of the college.
The document specifically covers: the formation of the college; the establishment within the framework of the college of the written arrangements; revision of membership; college procedure; supervisory cooperation and exchange of information; cases in which college members must be consulted; emergency situations; amendments to written arrangements; and termination of written arrangements.