The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
The BBA’s board voted unanimously to approve the transfer of the administration of LIBOR to the new administrator as recommended by the Hogg Tendering Advisory Committee on 9th July 2013 and has been working since then to ensure a smooth transition. The BBA will hand over administration of the benchmark on 1st February 2014 following FCA approval.
The appointment of a new administrator was one of the key recommendations of the Wheatley Review which was set up in 2012 following the revelations of attempts to manipulate LIBOR. The BBA has worked hard to implement all the recommendations of the review in order to restore confidence in LIBOR as
Commenting on the announcement, BBA Chief Executive Anthony Browne said:
“Restoring confidence in LIBOR has been an absolute priority for the BBA since I took over as Chief Executive. We have been working hard with regulatory authorities and the Government to put in place much-needed reforms to the system.
“The BBA worked closely with the Wheatley Review into LIBOR, then with the Hogg Committee and latterly with ICE Benchmark Administration Ltd. Today’s announcement is a further step in restoring the credibility of the rate. The BBA has strongly stated the need for greater regulatory oversight of LIBOR, and tougher sanctions for those who try to manipulate it. That is why the BBA Council agreed that responsibility for LIBOR should no longer lie with the BBA.
“The benchmark now has better regulatory oversight and improved governance.”
“The BBA should transfer responsibility for LIBOR to a new administrator, who will be responsible for compiling and distributing the rate, as well as providing credible internal governance and oversight. This should be achieved through a tender process to be run by an independent committee convened by the regulatory authorities.”
Full details of the Wheatley Report’s findings on this issue are set out in Chapter 3, paragraphs 3.5 to 3.16. A full copy of the report is available here.