The UK Government should continue to assist in finalising the new Market Abuse Regulation, which will apply across Europe, and bring another level of protection against manipulation.

(ii.) Institutional reform
But statutory regulation – while vitally important in providing assurance and confidence in the process – is not a panacea.
Whilst the changes to the regulatory regime I have outlined will provide a sizeable and robust foundation for reform, it is equally important that the governance and oversight of LIBOR is overhauled.
To achieve this I recommend that:
The British Bankers Association clearly failed to properly oversee the LIBOR setting process and should take no further role in the administration and governance of LIBOR. Responsibility should be transferred to a new administrator. We are today starting an open tender process to invite organisations to take over the running of LIBOR. I am confident that there are a number who are willing to take it on and meet my expectations regarding the new institutional model of governance and oversight, which I have set out in detail in my report.
The process of transition to a new body is crucial; and it must be open, transparent and efficient, to ensure fairness and minimum disruption and volatility in markets. We must also ensure that the process delivers on restoring trust in the running of LIBOR.
As I have recommended in my report, there should be a tender process to be run by an independent committee convened by the regulatory authorities.
I am very pleased to be able to announce that Lady Sarah Hogg, chairman of the Financial Reporting Council, has agreed in principle to chair this panel once it is established. Sarah brings an unparalleled depth and breadth of experience in corporate governance, regulation, public policy and financial services to this crucial task, and I can't think of any one better placed to lead it. I am delighted she has agreed to take this on.
The new administrator should fulfil specific obligations such as surveillance and scrutiny of submissions as part of its governance and oversight of the rate.
Broadly, I expect that new institutions should demonstrate much greater independence, with a clear distance between institutions and submitting banks. A specific oversight process also needs to be set up at administration, governance and bank levels. There must also be transparent systems, processes and structures, with clear accountabilities at every level.
It is essential that the conduct of the new administrator should be rigorous and transparent, in order that they cleanse the toxic brand of LIBOR, and generate trust in the process moving forward.

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