FCA urges further transition of LIBOR-linked bonds

FCA is continuing to encourage issuers and bondholders of outstanding LIBOR-linked bonds to take whatever action is necessary to transition them to fair alternative rates. Wherever consent solicitation is practicable, these processes should be scheduled, and the bond issuer should be responsible for the programme. Bond holders should also be engaging with issuers to get conversion processes started. It also notes that publication of synthetic yen LIBOR will end at the end of 2022, and FCA is still working on ceasing the requirement to continue publication of the 1 and 6 month synthetic sterling LIBOR at the end of March 2023, and on how soon 3-month sterling LIBOR setting could feasibly end.  The US dollar LIBOR panel ends in June 2023 and many bonds will not benefit from the US transitional provisions. FCA is looking at whether it should use its powers to require continued publication on a temporary and synthetic basis of 1, 3, and 6 month US Dollar LIBOR settings.

Emma Radmore