The government has launched its consultation on the regulation of the London Interbank Offered Rate (LIBOR). The consultation seeks the views of industry and the public on legislation to implement the key recommendations of the Wheatley Review, which the government accepted in full last month.

The consultation paper invites comment on two pieces of secondary legislation to bring LIBOR within the scope of regulation and making the manipulation of LIBOR a criminal offence.

It also discusses the potential for other benchmarks to be covered by secondary legislation. Additional benchmarks could be included within the scope of regulation or the application of the criminal offence.

The government says it will implement the recommendations as soon as possible by amending the Financial Services Bill, which is currently before Parliament. The Bill is expected to receive Royal Assent by early 2013, subject to the Parliamentary timetable.

On 28 September, the Wheatley Review published its final report 'The Wheatley Review of LIBOR' which included a 10-point plan for comprehensive reform of LIBOR in the wake of the LIBOR scandal which Barclays became embroiled in.

The consultation closes on 24 December 2012.