Article

LIBOR transition

Setting your firm up for success

Regulators have signalled 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 programmes 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 is designed to help Board members and executives 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 programmes. To find out more, please visit our IBOR reform page or 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.

deloitte-uk-centre-for-regulatory-strategy-emea-logo
Did you find this useful?

Related topics