On 24 June 2021, the FCA published Consultation Paper 21/9: Proposed decision under Article 23D BMR for 6 sterling and yen LIBOR settings (CP21/9).
In CP21/9 the FCA is consulting on a proposal to use its Article 23D(2) powers introduced through amendments to the onshored Benchmarks Regulation (BMR) under the Financial Services Act 2021 (FS Act). The FCA proposes to require the administrator of LIBOR, ICE Benchmark Administration (IBA), to change the way 1-month, 3-month and 6-month sterling and Japanese yen LIBOR settings are determined after 2021 (the 6 LIBOR settings) to secure an orderly wind-down. The requirement would be conditional on any designation of the 6 LIBOR settings as Article 23A benchmarks taking effect immediately after end 2021.
The deadline for comments on CP21/9 is 27 August 2021.
Following the consultation, the FCA will consider any feedback in finalising its decision. It will communicate to the LIBOR administrator and markets in a clear and transparent way any final decision to use its powers to require a methodology change of the 6 LIBOR settings. The FCA will publish a notice in line with the requirements at BMR Article 23D(7) where it decides to use its Article 23D(2) powers. It will also clearly communicate any subsequent use of its powers.