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LIBOR transition

Setting your firm up for success

Regulators have signaled the need for firms to transition from LIBOR by the end of 2021. Given the degree of uncertainty and complexity, transition is likely to be one of the biggest transformation programs many firms will have undertaken.

Regulators globally have signalled that firms should transition away from the London Interbank Offered Rate (LIBOR) to alternative overnight risk-free rates (RFRs). Andrew Bailey, Chief Executive of the UK Financial Conduct Authority, has stipulated that this should happen by the end of 2021.

However, the rate is so embedded in the day-to-day activities of providers and users of financial services that completing transition will be a complex and time consuming task which could give rise to major risks for firms and their customers. It is vital that Boards take action now, but how do they navigate these issues, against a backdrop of uncertainty, and deliver one of the (if not the) biggest transformation projects they have ever faced? This report, from Deloitte UK, is designed to help Board members and executives to understand what is needed to drive transition.

In this report, we examine the three steps that, in our view, Boards should consider.

IBOR Reform services

Deloitte’s Global Interbank Offered Rate practice is working with firms across the industry to assist them with their benchmark transition programs. To find out more, please contact one of our experts listed below.

About the Centre for Regulatory Strategy

The Deloitte Centre for Regulatory Strategy is a powerful resource of information and insight, designed to assist financial institutions manage the complexity and convergence of rapidly increasing new regulation.

With regional hubs in the AmericasAsia Pacific and EMEA, the Centre combines the strength of Deloitte’s regional and international network of experienced risk, regulatory, and industry professionals – including a deep roster of former regulators, industry specialists, and business advisers – with a rich understanding of the impact of regulations on business models and strategy.

You can find more reports like this at Deloitte.co.uk/ECRS, where you can also sign-up for our monthly risk and regulation newsletter.

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Contacts

Laurent Berliner
Partner - EMEA FSI Risk Advisory
Leader
Tel : +352 45145 2328
lberliner@deloitte.lu

Jean-Philippe Peters
Partner - Risk Advisory
Tel : +352 45145 2276
jppeters@deloitte.lu

Martin Flaunet
Partner - Banking Audit Leader
Tel : +352 45145 2334
mflaunet@deloitte.lu

Pascal Martino
Partner - Banking Leader
Tel : +352 45145 2119
pamartino@deloitte.lu

Arnaud Duchesne
Director - Risk Advisory
Tel : +352 45145 4852
aduchesne@deloitte.lu

Bertrand Parfait
Director - Risk Advisory
Tel : +352 45145 2940
bparfait@deloitte.lu

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