Britain's financial regulator has laid out a 10-point plan to overhaul a key global interest rate, following a scandal that engulfed Barclays bank and cost the job of its chief executive Bob Diamond.

Barclays agreed to pay a $453 million fine to U.S. and British agencies after admitting it had submitted false information for the London Interbank Offered Rate, or LIBOR. Diamond was the most high-profile casualty of the scandal.

Britain's Financial Service Authority on Friday said the rate-fixing scandal was an industry-wide problem which tore "the very fabric that our financial system is built on" and called for wholesale reforms.

FSA managing director Martin Wheatley said LIBOR's oversight should be taken away from the British Bankers' Association, and that bankers who break the law should face criminal prosecution.