Marking an important step towards the end of LIBOR, the Financial Conduct Authority has announced the dates that panel bank submissions for all LIBOR settings will cease and LIBOR rates will no longer be available.
The FCA has confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021. Regulated firms are being advised to take the necessary action to prepare for the change.
The Bank of England and the FCA have worked closely with market participants and regulatory authorities around the world to ensure that robust alternatives to LIBOR are available and that existing contracts can be transitioned onto these alternatives to safeguard financial stability and market integrity.
See the FCA’s announcement regarding the future cessation and loss of representativeness of the LIBOR benchmark settings and their recently published policy documents. The FCA will consult at a later date on proposed new powers under the Benchmarks Regulation.
Additional support can be found with the Working Group on Sterling Risk Free Reference Rates roadmap and priorities to assist businesses in planning a smooth transition by the end of 2021. The Financial Stability Board has also published a Global Transition Roadmap for LIBOR.
