Monday 10 September 2012
IMA: 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.”
Read the full response here.
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About the Investment Management Association:
- The IMA is the trade body for the UK's £4.2 trillion asset management industry (retail and institutional) which is one of the world's leading investment management centres.
- Our role is to represent the interests of the asset management industry to government and regulators both in the UK and internationally.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.