FCA reasserts need to transition from LIBOR as end-date approaches

'Synthetic LIBOR will not last'

The Financial Conduct Authority has reasserted the necessity of transitioning away from LIBOR as the deadline for the rate looms, reminding the industry that synthetic LIBOR “will not be published indefinitely”.

In a feedback statement published regarding the regulator's decisions on the use of LIBOR for articles 23C and 21A, the FCA encouraged users of the rate to "continue to focus on active transition and move their contracts away from LIBOR wherever possible" rather than relying on the limited synthetic version. Synthetic LIBOR confirmation a 'welcome relief' From 1 January 2022, all LIBOR settings excluding one, three and six-month sterling and Japanese yen as well as five US dollar settings will cease, with the former transferring to a synthetic model, while the latter will continue to ...