Any incidents or issues that may put the credibility of the GDL and the London bullion market in doubt are treated very seriously. LBMA has a standard procedure that enables it to handle such incidents and issues in a systematic way to maintain the credibility of the List generally but the RSP in particular.

This procedure would be invoked in response to a particular stimulus of a reputational nature. It must be viewed as an iterative process, particularly in situations where new information is produced or a situation escalates or deteriorates.

In summary, the procedure is as follows:

  1. Receipt/Logging of Complaint/Issue
  2. Media and Market Review
  3. RGG Audit (or equivalent) Review
  4. Auditor Review and Interaction
  5. Legal Review
  6. Refiner Contact
  7. Physical Committee Reporting and Escalation and/or Legal Consultation
  8. Action/Sanction
  9. Public Disclosure
  10. Lessons Learnt
  11. LBMA Communication

Sanctions could include suspension subject to resolution or being moved to the Former List with immediate effect. The latter sanction would result in the Refiner being unable to supply Bars with the commensurate severe business implications.