European Union regulators are calling on banks to review how they pay staff that submit benchmark data, in the wake of the scandal engulfing interbank lending rates and oil price reporting.
Bloomberg reports that the guidelines, drawn up by regulators in the European Securities and Markets Authority are part of a broader EU response to the rate-rigging scandal that may also see oversight of some 'critical benchmarks', such as Libor, given to the Paris-based agency.
Banks should remove 'any direct link between the remuneration of staff involved in benchmark data submissions and the remuneration of, or revenues generated by, different staff' whenever there is a risk of a conflict of interest, according to guidelines published by Paris-based ESMA Thursday.
Firms should also 'prevent or control the exchange of information between staff' whenever such contact could lead to attempts at rate manipulation.
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