• Firstly, reforming the current framework for setting and governing Libor. This will include how banks submit data, and whether actual trade data can be used to set the reference rate; the governance of Libor; and whether the setting of Libor should be brought into statutory regulation. It will also look at alternative rate-setting processes and the financial stability consequences of a move to a new regime and, how a transition might be appropriately managed.
• The second area to be looked at is how to work out the best way to tackle abuse. This will consider the scope of the UK authorities’ civil and criminal sanctioning powers to deal with the type of misconduct seen. It will also look at whether individual persons in banks with a role in Libor setting should be subject to prior approval by the regulator.  
• And finally, other areas to be looked at are where price-setting mechanisms are used in financial markets and whether policy changes need to be made. Provisional recommendations will be made, designed to inform the work on benchmark reform being considered globally.

Concluding his speech, Wheatley said:

"It is clear that regardless of the outcome of ongoing international investigations, trust in a vital part of the financial system has been badly damaged and timely action is needed to restore it. Today, we are taking the first step in this process by launching our discussion paper. Any decision taken will need to be phased in so that it does not disrupt market orderliness, particularly in systemically important markets. I encourage you to consider all of the issues I have outlined today, and give us your views.

It is only by utilising the expertise from across the financial sector and across the globe that we can effectively solve the problems before us for Libor, and provide a foundation for the work that will be taking place on other benchmarks around the world.

My goal is to ensure that Libor is reformed in a way that ensures credibility and trust – both in our financial system and for consumers that rely on us – to ensure that markets work well and consumers get a fair deal."

In a press release for HM Treasury, Mark Hoban, Financial Secretary to the Treasury, said: "This discussion paper demonstrates that we will give regulators the powers they need to prevent the manipulation of key benchmark rates in the future. This review will report by the end of the summer in time for any necessary changes to be taken forward in legislation. The Government is also working with its international partners to inform the international work in this area and work towards a globally consistent solution.”