On October 17, HM Treasury published a written statement announcing that the Government “fully endorses” all of the recommendations of the Final Report of the Wheatley Review of LIBOR setting out recommendations for LIBOR reform (see the September 28, 2012, edition of Corporate and Financial Weekly Digest).
The Government will introduce amendments to the Financial Services Bill currently before Parliament to implement those recommendations that require primary legislation. These will make administering LIBOR and submitting benchmark rates regulated activities under the UK’s financial services regulatory regime. Manipulation of benchmark rates such as LIBOR will be made a specific criminal offense subject to the investigation and prosecution power of the Financial Services Authority to be followed by its successor regulator the Financial Conduct Authority.
The Government also confirmed that the Review’s other recommendations will be implemented, including the British Bankers Association transferring responsibility for LIBOR to a new administrator.
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