Investment - Articles - LIBOR needs reform not replacement

 In its response to Martin Wheatley's consultation on reforming LIBOR, the Investment Management Association (IMA) strongly advocates correcting current deficiencies with LIBOR rather than replacing it with a new benchmark.
 Market confidence in such a vital benchmark requires any reform to take place without delay.

 A reformed LIBOR should give the regulator a central role and create a more robust and transparent governance structure. However the suggested changes to long-standing criminal offences need to be carefully reviewed for unintended impacts.

 Guy Sears IMA Director of Wholesale said:

 "The LIBOR scandal has caused significant reputational damage to London so it is imperative that reform is swift, well-thought through and robust. However we do not support a rush to alterations to criminal offences without more work on potential impacts. Current powers, including fines and the ability to ban individuals from working in the industry, should in the short term be significant deterrents."