The FCA have published a statement confirming that they have commenced discussions on the impact of the coronavirus on firms’ LIBOR transition plans, along with the Bank of England and members of the Working Group on Sterling Risk-Free Reference Rates.

The FCA confirmed that the central assumption that firms cannot rely on LIBOR being published after the end of 2021 has not changed and should remain the target date for all firms to meet. But the FCA concedes that there has been an impact on the timing of some aspects of the transition programmes of many firms. This is particularly relevant in segments of the UK market that have made less progress in transition and are therefore still more reliant on LIBOR, such as the loan market.

Whilst stopping short of issuing guidance for firms, the FCA stated that in conjunction with other international authorities, the Bank of England, FCA and Working Group will continue to monitor and assess the impact on transition timelines, and will update the market as soon as possible.