The Treasury Select Committee has published an annex to its report on “Fixing LIBOR: preliminary findings”. It contains FSA’s response to the report and the Treasury Committee’s feedback. FSA welcomed the report, but stressed regulators should encourage institutions to co-operate with them and noted that Barclays’ fine had been significantly reduced because of the high degree of co-operation with FSA and Barclays’ own disclosure of wrongdoing to the regulator. It believes flexibility in levels of sanction is an important regulatory tool so regulators can show the benefits of openness. The Committee agreed this is important and also noted regulators should in future be “resolutely clear” to firms about any reservations they have over senior appointments. It also noted that regulators should have the power to remove senior executives where necessary but must take into account their duty of care to shareholders when doing so. (Source: Fixing LIBOR: Preliminary Findings: FSA Response to the Committee’s Second Report)