LIBOR transition
The Financial Conduct Authority (FCA) has served final notice on UK firms setting out its expectations on the transition away from LIBOR. The FCA has made it clear that the Covid-19 pandemic has not altered its requirement that firms continue their momentum towards a full transition away from LIBOR by the end of 2021, when LIBOR will cease, or cease to be a representative benchmark, in most currency-tenor settings (only liquid tenors of USD LIBOR are to continue to mid 2023 to allow legacy contracts which reference them to run-off).
We are monitoring developments closely, including industry trends and product documentation initiatives, through our LIBOR working group. We are advising a variety of clients on the transition: in relation to both regulatory and transactional matters; and in relation to both legacy LIBOR exposure and new business using risk-free rates (RFRs). Our digital solution, Vantage, combines cutting-edge AI and related technology with our lawyers’ broad and deep expertise in this area.
