Thursday, 18 October 2012 09:53
LIBOR recommendations to be implemented in Financial Services Bill
The Government has agreed to amend the Financial Services Bill to reflect recommendations made in the Wheatley Review into LIBOR.
The final report into LIBOR was published by Martin Wheatley, managing director of the Financial Services Authority, on 28 September.
Specific amendments to be included in the Financial Services Bill are bringing LIBOR activities, including submission and administration of rates, within the scope of statutory regulation and creating a new criminal offence for misleading LIBOR benchmarks.
The Financial Conduct Authority will be provided with a specific power to make rules requiring banks to submit to LIBOR with reference to a Code of Practice.
The British Bankers' Association will be removed as operational LIBOR administrator and a successor will be found.
Financial Secretary to the Treasury Greg Clark said: "The Government is determined to restore the credibility of LIBOR. That is why we have accepted Martin Wheatley's recommendations in full and will begin the process of implementing them without delay.
"The Government's changes to legislation will ensure that those who attempt to manipulate LIBOR face the full force of the law. But this is just one part of the process, the banks and the BBA will have to play their part to ensure that reform is effective and LIBOR's reputation is restored."
The final report into LIBOR was published by Martin Wheatley, managing director of the Financial Services Authority, on 28 September.
Specific amendments to be included in the Financial Services Bill are bringing LIBOR activities, including submission and administration of rates, within the scope of statutory regulation and creating a new criminal offence for misleading LIBOR benchmarks.
The Financial Conduct Authority will be provided with a specific power to make rules requiring banks to submit to LIBOR with reference to a Code of Practice.
The British Bankers' Association will be removed as operational LIBOR administrator and a successor will be found.
Financial Secretary to the Treasury Greg Clark said: "The Government is determined to restore the credibility of LIBOR. That is why we have accepted Martin Wheatley's recommendations in full and will begin the process of implementing them without delay.
"The Government's changes to legislation will ensure that those who attempt to manipulate LIBOR face the full force of the law. But this is just one part of the process, the banks and the BBA will have to play their part to ensure that reform is effective and LIBOR's reputation is restored."
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