FCA, BoE and RFRWG highlight steps firms must take to complete sterling LIBOR transition by end-2021

Regulatory Updates | 12/01/21

The Financial Conduct Authority (FCA) and the Bank of England (BoE) have both published press releases highlighting the need for firms to transition away from sterling LIBOR by the end of 2021.

Both the FCA and BoE have set clear expectations for regulated firms to remove their reliance on LIBOR in new and old contracts and will continue to work closely with firms to ensure a smooth transition.

The Working Group on Sterling Risk-Free Reference Rates (RFRWG) has also published an updated version of its priorities and roadmap for the final year of transition recommending that, from the end of March 2021, sterling LIBOR is no longer used in any new lending or other cash products due for maturity after the end of 2021 and firms no longer initiate new linear derivatives linked to LIBOR after the same date.