The British Bankers' Association is preparing to part ways with the London interbank offered rate, or Libor, the scandal-plagued benchmark interest rate that the group created 26 years ago.

The council of the BBA, a private trade association that represents more than 200 banks that do business in the UK, voted earlier this month to give up responsibility for overseeing Libor, according to a person familiar with the matter. The council's vote came in anticipation of a top British regulator's expected recommendation later this week that the BBA no longer be in charge for Libor, which serves as the basis for trillions of dollars worth of financial contracts, this person said.