Wheatley Review sets out UK’s response to LIBOR scandal

11 Sep 2012

Martin Wheatley, head of conduct regulation at the FSA, has given a speech (http://www.fsa.gov.uk/library/communication/speeches/2012/0810-mw.shtml?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1) providing details on his review of the alleged manipulation of the London Interbank Offered Rate (LIBOR). Mr Wheatley has been asked by the Government to look at how the system can be reformed to ensure its credibility and trust within it. The Wheatley Review will consider:

• reforming the current framework for setting and governing LIBOR;

• how to find and tackle abuse; and

• other areas where prince-setting mechanisms are used in financial markets and whether policy changes will be needed.

The Wheatley Review has published a discussion paper (http://hm-treasury.gov.uk/d/condoc_wheatley_review.pdf) for consultation which sets out the Review’s early thinking on the issues raised. Stakeholders are invited to submit their responses by 7 September 2012.

There are also proposals at an EU level to specifically provide for the manipulation of LIBOR and other benchmarks within the market abuse regime. For further information, please see our blog (http://herbertsmithfsrnotes.com/2012/07/29/strengthening-the-european-market-abuse-regime-the-european-commissions-proposed-libor-amendments/?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1) on this topic.