The FCA has announced that all LIBOR settings will cease. What does it mean?

The Financial Conduct Authority (FCA) has published a statement announcing the dates that panel bank submissions for al LIBOR settings will cease, which will mark the end of the availability of LIBOR rates. In summary:

• LIBOR settings will no longer be provided by any administrator, and will no longer be representative, immediately after 31 December 2021 for all Sterling, Euro, Swiss Franc and Japanese Yen LIBOR settings; as well as for 1-week and 2-month US dollar tenors;
• All remaining US dollar settings will no longer be provided by any administrator, and will no longer be representative, immediately after 30 June 2023. 

The FCA does not expect any of the LIBOR settings to become unrepresentative before those dates, based on undertakings received from panel banks.

In this alert, you will read more on the FCA's intentions, as well as on the authority's next steps. Moreover, the alert also analyzes what the impact on the ongoing legal documentation will be, as well as the ways in which your firm should prepare.