On 23 March 2021, the European Commission issued a targeted consultation to assess the suitability of designating a statutory replacement for certain settings of Swiss Franc LIBOR (CHF LIBOR) to products such as savings accounts, mortgages and loans, including consumer credit agreements and small business loans, concluded prior to the entry into application of the EU Benchmark Regulation on 1 January 2018, and governed by the laws of one of the EU Member States.

Among other things, the consultation asks whether respondents agree that the proposed replacement rate (3M Swiss Average Rate Overnight (SARON) calculated as a compounded SARON under a last reset methodology) plus an ISDA adjustment spread (calculated as a historical median approach over a five-year lookback period) is a fair and equitable solution for a replacement of CHF LIBOR in mortgages and small business loans and consumer credit agreements.

The deadline for comments on the consultation is 18 May 2021.