UK Parliament / Open data

Financial Services Bill

Proceeding contribution from Lord Sassoon (Conservative) in the House of Lords on Tuesday, 20 November 2012. It occurred during Debate on bills on Financial Services Bill.

The definition of “benchmark”, as we have already been through, has a number of legs to it, the first of which is that it is set by reference to the state of the market. Even if for the moment we park that one, we then come to the investment-related test, for which the GDP deflator would not apply. I know that in the example which the noble Lord gave it was part of something else, but the mere fact that it is part of something else does not mean that the GDP deflator is covered by the definition here.

On why LIBOR is not mentioned anywhere, which it is not, it is precisely because we are putting in place a framework. The secondary legislation, which will be preceded by a consultation coming very shortly, will be around what the first regulated benchmark should be. The Government will propose that it should be LIBOR and at this stage only LIBOR, but we will ask whether anything else should be covered. That is why LIBOR is not mentioned in the Bill; it will come in the secondary legislation.

Type
Proceeding contribution
Reference
740 c1748 
Session
2012-13
Chamber / Committee
House of Lords chamber
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