The approved persons regime – which regulates who can take senior banking roles – will also be amended to include bankers responsible for Libor submissions.
The shake-up is aimed at rebuilding trust in the key interbank lending rate which was lost when it was revealed that banks had entered false data to manipulate the rate – but it can also be extended to other benchmarks in future. The new structure will be run by a body established by the new Financial Conduct Authority (FCA).
“Confidence and trust are critical to financial markets. The disturbing events uncovered in the manipulation of Libor have severely damaged that trust,” said FCA head Martin Wheatley. “These proposals will bring in clear rules for the setting and governance of benchmarks and are a key step to ensuring the integrity of Libor.”