Statement on impact of Covid-19 on LIBOR transition – update

Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans.

The update states that due to coronavirus, the PRA and FCA suspended transition data reporting at the end of Q1 for dual regulated firms, and cancelled some Q1 firm meetings. In light of the developments since, including the FSR statement on LIBOR published on 7 May 2020, which reported that recent market volatility has reinforced the importance of transitioning to alternative rates by end-2021, the PRA and FCA have decided to resume full supervisory engagement with these firms on their LIBOR transition progress from 1 June 2020, including data reporting at the end of Q2.

Emma Radmore