The BBC Trust should be abolished and the corporation should be regulated externally, an independent review has said.
Sir David Clementi, who led the review into how the BBC is governed, said the trust was "flawed" and called for "fundamental reform".
Oversight of the corporation should be "passed wholly to Ofcom", according to the report, which was commissioned by the Government in light of a series of scandals to hit the BBC in recent years.
They included its handling of the Jimmy Savile abuse allegations, Lord McAlpine's libel claim over false child abuse allegations, and the furore over Jonathan Ross and Russell Brand's 2008 phone call to actor Andrew Sachs.
Sir David said: "Following consultation with a wide range of interested parties, and a detailed assessment of the options, I have concluded that there should be a fundamental reform of the system of governance and regulation for the BBC.
"The BBC Trust model is flawed. It conflates governance and regulatory functions within the trust.
"Regulatory oversight should pass wholly to Ofcom, which is already the public service regulator for the UK's broadcasting industry and has the ability to look at the BBC in the context of the market as a whole.
"Ofcom would be a strong regulator to match a strong BBC."
In response to the report, BBC Trust chairman Rona Fairhead said: "Sir David Clementi proposes a strong BBC board and a strong external regulator - a change we have argued for.
"It will be important to get the details right, and we now want to work with the Government to ensure roles are clear, the structure is effective and the BBC's independence protected."
Sir David, former deputy governor of the Bank of England, was appointed by Culture Secretary John Whittingdale last September to lead the review ahead of the renewal of the BBC's Royal Charter, which runs out at the end of this year.
The review recommends the BBC should be governed by a board with a majority of non-executive directors which holds "primary responsibility for the interests of the licence fee- payers".
The charter should place a duty on the BBC to consult with the public and the corporation should handle complaints first, with Ofcom dealing with appeals on editorial issues, the report states.
Ofcom should issue the BBC with an "operating framework" which sets out the obligations placed on the organisation, including its broadcasting content and distribution obligations, it adds.
The BBC praised Sir David's "thorough and insightful" report and said it agreed with proposals for external regulation.
A spokesman for the corporation said: "If delivered, these proposals will bring about the most significant change in governance and regulation of the BBC in its lifetime.
"That is why it is important they are implemented in a way that strengthens the BBC's editorial independence and ensures that future decisions about the corporation are made very clearly in the best interests of audiences, who own the BBC.
"A move to a single external regulator with strong powers will provide assurance to the market that the BBC is independently regulated."
An Ofcom spokesman said: "We note Sir David Clementi's review, which has considered a range of different options. We await the Government's decision on the future regulation of the BBC."
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