LIBOR transition: further instalments from the regulators

“The central assumption that firms cannot rely on LIBOR being published after the end of 2021 has not changed and should remain the target date for all firms to meet,” the Financial Conduct Authority has confirmed in an emphatic statement about the impact of the coronavirus crisis on LIBOR transition plans. Charlotte Hill and Daniel Hirschfield outline recent regulatory developments pertaining to this high-priority issue.

CharlotteHill is a partner and head of the financial services regulatory group at TaylorWessing in London. Daniel Hirschfield is a professional support lawyer for theteam. Contact them on c.hill@taylorwessing.com andd.hirschfield@taylorwessing.com.

Financial regulators in the United Kingdom are viewing 2020 as a critical year for LIBOR transition. The Bank of England’s Financial Policy Committee observed in its December 2019 Financial Stability Report that good progress had been made towards LIBOR transition, but that firms needed to accelerate their efforts in order to ensure that they are prepared for the cessation of LIBOR by the end of 2021.