A public consultation on the regulation of the Libor has been launched today by the government.

The views of industry and the public are sought on legislation to implement the key recommendations of the Wheatley Review of Libor, which the Government accepted in full last month.

In order to restore confidence in this ‘important global benchmark’, the consultation invites comment on two pieces of secondary legislation:

  1. Bringing Libor within the scope of regulation
  2. Making the manipulation of Libor a criminal offence.

Recommendations will be implemented  through amending the Financial Services Bill, which is currently before Parliament.

The Financial Secretary to the Treasury, Greg Clark said:

‘The Government has acted swiftly and is implementing Martin Wheatley’s recommendations as quickly as possible – introducing legislation that brings Libor within the scope of regulation and creating new criminal sanctions for attempted manipulation of Libor’

‘Recent events have illustrated that Libor might not be the only benchmark subject to attempted manipulation. We are consulting on whether further benchmarks should be brought within the scope of regulation.’

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