Wheatley Review lines up ICAEW for Libor audit role

by Kevin Reed

More from this author

28 Sep 2012

  • Comments

EXTERNAL AUDIT GUIDELINES will be formed between the ICAEW and a new Libor administrator to make sure that robust assurance can be undertaken on the way inter-bank lending rates are set.

A review by Martin Wheatley (pictured), incoming chief executive of new financial services regulator the Financial Conduct Authority, into the Libor-rigging scandal has found that more damage would be done implementing a new regime – but serious reform is required.

Alongside the introduction of a new administrator to manage the Libor-setting process, a range of new measures need to be implemented.

Among the new measures, internal and external assurance will be central to checking that no Libor manipulation has taken place.

Wheatley recommends that the ICAEW work with the new Libor administrator "to ensure that their guidance informs and is consistent with the code of conduct". The ICAEW had previously announced plans to develop guidance for providing external assurance on interest rate benchmark submissions, which include Libor.

"Development of this guidance will ensure standardisation of assurance and audit across all participants, which will benefit contributing banks, the rate administrator and the regulatory authorities," the review stated.

"However, the review recognises that the systems and controls of banks are likely to be dynamic while a code of conduct is developed and implemented, but stresses the creation of this guidance should be in place when banks are required to obtain external assurance."

The review also calls for annual internal audit and compliance reviews of the processes behind Libor setting.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.