The Future of LIBOR -- The Final Report from The Wheatley Review
By RICHARD E. FARLEY
On September 28, 2012, the U.K. FSA's Martin Wheatley and his review team issued their Final Report setting out their recommendations regarding the reformation of LIBOR. The Wheatley Review recommendations will be considered for inclusion in the Financial Services Bill which is currently being considered by the House of Lords. The Wheatley Review concludes that there is a clear case in favor of comprehensively reforming LIBOR, rather than replacing the benchmark. The recommendations involve formal regulation of LIBOR, replacement of the BBA as administrator, adoption of a Code of Conduct, elimination of lesser used LIBOR rates and expansion of the number of contributing banks.