The FCA published a consultation paper on 20 May 2021, asking for views on how it intends to use its so-called ‘tough legacy powers’ in relation to a critical benchmark (such as LIBOR) which is wound down, and the approach to prohibit the benchmark’s use in new contracts.
Under the UK Benchmarks Regulation (BMR), the FCA has new powers to address the issue of legacy contracts which have no genuine alternatives to LIBOR and no realistic ability to be renegotiated or amended.
The consultation is particularly relevant to some GBP, JPY and USD LIBOR settings, which have been confirmed as becoming permanently unrepresentative.
Download this At a glance for a summary of the consultation and its implications for firms.
Partner, PwC United Kingdom
Tel: +44 (0)7753 928494
Partner, UK LIBOR Transition proposition Client & Markets Lead, PwC United Kingdom
Tel: +44 (0)7850 515679
Partner, UK LIBOR Contracts & Client Outreach Lead, PwC United Kingdom
Tel: +44 (0)7795 617469