Proposal For Framework Legislation Regarding Interest Rate Benchmarks

On 31 March 2014, the Financial Supervisory Authority of Norway published a consultation paper setting forth proposed regulations for the determination of interest rate benchmarks. This article provides a short summary of the consultation paper.

On 30 August 2013, the Norwegian Ministry of Finance (the "NMF") instructed the Financial Supervisory Authority of Norway (the "FSAN") to prepare a draft consultation paper setting forth i.a. proposed regulations for the determination of interest rate benchmarks. On 31 March 2014, the FSAN published its consultation paper.

The finance industry is currently adapting to the ESMA-EBA Principles for Benchmark-Setting Process and the IOSCO's principles for financial benchmarks. Further there is an ongoing legislative process within the EU, expected to result in a financial benchmark regulation. Such regulation will presumably be made part of the EEA Agreement and thus become implemented in Norway as well. With the details and