In July of 2017, Andrew Bailey, the chief executive of the UK Financial Conduct Authority (FCA), announced in a speech that after 2021 the FCA would no longer use its power to compel panel banks to submit rate information used to determine the London Interbank Offered Rate (LIBOR). Mr. Bailey encouraged the market to develop robust alternative reference rates to replace LIBOR.
LIBOR has long been the dominant rate for determining interest payments on adjustable-rate financial products and, although progress is being made, LIBOR transition remains a fundamental issue confronting financial markets. Understanding and planning for the impact on your business is key to a smooth transition. Baker McKenzie is pleased to provide expert guidance on this issue below. Please do get in touch if you'd like to learn more.
To date, 2019 has seen significant developments in connection with LIBOR transition. The official sector and industry groups have continued to work to develop alternative reference rates and contractual fallbacks. Read in detail about the latest guidance and key considerations for your business in our most recent report. For a print-friendly version, please click here.