Oversight of Libor will be handed to the U.K.'s financialregulator, and dozens of the currencies and maturities that make upthe benchmark axed, under proposals designed to revive confidencein a rate tarnished by scandal.

The British Bankers' Association should be stripped of theresponsibility for managing the rate and other organizationsinvited to replace it, Financial Services Authority ManagingDirector Martin Wheatley said in London today. More than 100 Liborrates tied to currencies and maturities where there isn't enoughtrading data to set them properly should be scrapped, and a code ofconduct introduced for how lenders contribute to the benchmarkbacked by criminal penalties, he added.

“Governance of Libor has completely failed,” Wheatley said as heunveiled a report on the future of Libor. “This problem has beenexacerbated by a lack of regulation and a comprehensive mechanismto punish those who manipulate the system.”