On October 17, 2012, the British Financial Secretary to the Treasury, Greg Clark, delivered a written statement to Parliament regarding the Wheatley Review of LIBOR. The government fully endorsed all recommendations in the report. This means that the big changes for LIBOR described in our October 5, 2012 Blakes Bulletin will move ahead.
The government announced it will amend the Financial Services Bill being considered by the British Parliament to regulate LIBOR, to create a new criminal offence for misleading statements in relation to benchmarks such as LIBOR, and to provide the Financial Conduct Authority with the power to compel and regulate submissions to LIBOR.
In addition, the government appointed Baroness Sarah Hogg, former Chief Secretary to the Treasury, to oversee a panel to select the new administrator of LIBOR. The government also called on the British Bankers Association to move ahead with the other recommendations in the Wheatley Review. The British Bankers Association has previously indicated that it is prepared to do so.