Independent report

The Wheatley Review

The Government launched its public consultation on the regulation of the London Interbank Offered Rate (LIBOR) on 28 November 2012.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government


Implementing the Wheatley Review: draft secondary legislation

The Wheatley Review of LIBOR: final report

The Wheatley Review into LIBOR: initial discussion paper


Government publishes consultation on secondary legislation to implement Wheatley Review recommendations

The Government launched its public consultation on the regulation of the London Interbank Offered Rate (LIBOR) on 28 November 2012.

The consultation seeks the views of industry and the public on legislation to implement the key recommendations of the Wheatley review of LIBOR, which the Government accept in full last month. The consultation paper invites comment on two pieces of secondary legislation:

  • bringing LIBOR within the scope of regulation
  • making the manipulation of LIBOR a criminal offence

Government’s response to the Wheatley Review of LIBOR

The Government fully endorses every one of the Wheatley Review recommendations. All institutions involved in the process of setting LIBOR should implement them. In particular, the Government will bring forward amendments to the Financial Services Bill to implement those recommendations that require primary legislation at Report stage in the Lords. The Government has made these amendments available in draft in advance of this timetable.

Final report

On 28 September 2012 the Wheatley Review published its final report ‘The Wheatley Review of LIBOR’, which included a 10-point plan for comprehensive reform of LIBOR.

The Government is examining the Wheatley Review recommendations in detail, including the costs and benefits of what has been proposed, and the design and implementation options.

It is the Government’s intention to respond to the review when Parliament returns, and introduce any necessary legislation in the Financial Services Bill that is currently being considered by the House of Lords.

Speech by Financial Secretary to the Treasury, Rt Hon Greg Clark MP; Wheatley Review Final Report

Speech by Martin Wheatley ‘Pushing the reset button on LIBOR’, 28 September 2012 (FSA website, opens in new browser window)

Discussion paper

The discussion paper above was published on 10 August 2012. Stakeholders had until the 7 September to submit written responses to the review.

Responses to the discussion paper are published above.


The Chancellor of the Exchequer commissioned Martin Wheatley, Managing Director of the FSA and Chief Executive-designate of the Financial Conduct Authority, to undertake a review of the structure and governance of LIBOR and the corresponding criminal sanctions regime.

Terms of reference

The Wheatley Review will formulate policy recommendations with a view to:

  1. Reforming the current framework for setting and governing LIBOR. This work should, inter alia, consider:
  • whether participation in the setting of LIBOR should be brought into the regulatory perimeter under the Financial Services and Markets Act 2000 as a regulated activity;
  • how LIBOR is constructed, including the feasibility of using of actual trade data to set the benchmark; the appropriate governance structure for LIBOR;
  • the potential for alternative rate-setting processes; and
  • the financial stability consequences of a move to a new regime and how a transition could be appropriately managed.
  1. Determining the adequacy and scope of sanctions to appropriately tackle LIBOR abuse. This work should consider:
  • the scope of the UK authorities’ civil and criminal sanctioning powers with respect to financial misconduct, particularly market abuse and abuse relating to the setting of LIBOR and equivalent rate-setting processes; and
  • the FSA’s Approved Persons regime and investigations into market misconduct.
  1. Whether similar considerations apply with respect to other price-setting mechanisms in financial markets, and provide provisional policy recommendations in this area.

Press notice (28/09/12): Independent review into LIBOR published

The Hogg Tendering Committee for LIBOR

Published 2 July 2012