The UK regulator, the Financial Conduct Authority, is reviewing the benchmark setting for gold as part of a wider probe on global rates.

This story was originally published by this publication on 21 November 2013 and has now been republished to include an update in the circumstances reported on. 

The UK regulator, the [tag|Financial Conduct Authority|]Financial Conduct Authority[/tag], is reviewing the benchmark setting for gold as part of a wider probe on global rates, according to a report by Bloomberg.

A source close to the regulator has confirmed that it is taking a preliminary look at the way benchmarks for gold are set.

When contacted by this publication, the FCA declined to comment on the matter, which according to the Bloomberg report, is preliminary and has not yet risen to the level of a formal investigation.  

One of the key benchmarks, is the London gold fixing which is set twice per day at 10:30am and 3pm by a group of five banks. 

If the FCA decides to take the matter further, it will add to the growing international scrutiny of financial benchmark setting after a probe revealed that the London interbank offered rate had been manipulated by some of the companies setting it.

It has been a busy first year for the FCA, which was formed in April after the Financial Services Authority split into two regulatory bodies, the FCA and the Prudential Regulation Authority.

Since then, the FCA has issued 85 final notices and handed out fines to the amount of £303 million in just seven months, revealed research by Wolters Kluwer Financial Services.

According to the report, the FCA published an average of 11.3 final notices a month since the abolition of the FSA.

Out of the £303 million in fines, £274.74 million were imposed on the banking sector for misdemeanors including Libor-rigging at Rabobank and Icap Europe, and a market abuse fine for JP Morgan in excess of £137 million.

Other fines include Sesame’s £6 million penalty for unsuitable advice, systems and controls, and Aberdeen Asset Management’s £7.2 million for failing to protect client money.

The largest fine handed out to an individual adviser was £150,000 to Andrew Jeffery, former director of West Sussex-based Jeffery Flanders (Consulting), for insurance fraud and failure to co-operate with the regulator, the Wolter’s report said.