25 March 2020

This article was written by Natalie Lim. 

In its statement of 25 March 2020, the FCA has confirmed that the central assumption that firms cannot rely on LIBOR being published after the end of 2021 remains unchanged. Firms should continue to work towards the target date of end 2021, and the regulator has emphasised that the transition from LIBOR remains an essential task that will strengthen the global financial system. 

While many preparations for transition will be able to continue, the FCA acknowledges that there has been an impact on the timing of some aspects of the transition programmes of many firms. In particular, the Covid-19 outbreak is likely to affect some of the interim transition milestones in segments of the UK market that have made less progress in transition and are therefore still more reliant on LIBOR (e.g. the loan market).

The FCA, Bank of England and Working Group will continue to monitor and assess the impact on transition timelines and update the market accordingly.

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