The HKMA will consider whether further supervisory actions will be needed in light of UBS's compliance with the above requirements.
An HKMA spokesperson said, "The HKMA is committed to protecting the integrity of the HIBOR benchmark fixing mechanism. In May 2013, the HKMA promulgated a statutory guideline on "Code of Conduct for Benchmark Submitters" to enhance the robustness of the benchmark fixing mechanism, including HIBOR. The HKMA expects all benchmark-setting banks to maintain proper oversight for such activities and put in place adequate and effective systems of control." The spokesperson added, "As for UBS, the bank has cooperated with the HKMA's investigation and agreed to comply with the requirements by taking appropriate follow-up actions promptly. The case is a clear reminder to all banks of their duty to uphold robust internal controls and governance and to take adequate measures to prevent and detect internal improprieties."
According to the HKMA's estimate, the UBS change requests had negligible impact on the actual outcome of the HIBOR fixing.
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