This is a key step in implementing one of the principal recommendations of the Wheatley Review.
Today, the Government announced the membership of the independent Committee which will recommend a new administrator for the London Interbank Offered Rate (LIBOR). The Committee’s work is now underway.
This is a key step in implementing one of the principal recommendations of the Wheatley Review of LIBOR, which the Government accepted in full last year. The appointment of a new LIBOR administrator, better able to manage the process and governance, is crucial to restoring confidence in this international benchmark and in maintaining the reputation of the UK’s financial services industry.
The Government is committed to restoring confidence in LIBOR and has taken decisive action to make sure that this happens as quickly as possible. The Government has already introduced legislation to make LIBOR a regulated benchmark and its manipulation a criminal offence.
The tendering process will be led by The Hogg Tendering Advisory Committee for LIBOR, chaired by Baroness Hogg. Later this year, the Committee will recommend who should be the new administrator of LIBOR in succession to the British Bankers’ Association (BBA).
The work of the Committee can now progress following the passage of a Resolution by BBA members, voted upon at an Extraordinary General Meeting of the BBA held this morning. A further announcement as to next steps will be made in due course.
Financial Secretary to the Treasury, Greg Clark said:
I am pleased that the Hogg Tendering Advisory Committee for LIBOR can now move forward with its work. The Government is determined to rebuild the reputation of UK financial services. Establishing confidence that the attempted manipulation of LIBOR can never happen again is crucial. That is why the Committee will follow the principles laid out by the Wheatley Review and recommend an organisation that displays the highest standards of transparency and probity to administer LIBOR. I am grateful to the Committee members for agreeing to take on this important task.
Notes for Editors
The Hogg Tendering Advisory Committee for LIBOR: Members
- Baroness Hogg, (Chair), Chairman; Financial Reporting Council
- Paul Fisher, Executive Director, Markets; Bank of England
- George Handjinicolaou, Deputy CEO and Head of EMEA; International Swaps and Derivatives Association, Inc
- John Kingman, Second Permanent Secretary; HM Treasury
- John Stewart, Chairman; Legal & General Group Plc
- Colin Tyler, Chief Executive; Association of Corporate Treasurers
- Martin Wheatley, Managing Director; Financial Services Authority
The Committee is supported by a Secretariat provided by HM Treasury and the FSA. The British Bankers’ Association (BBA) are also supporting the tendering process.