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On February 12, 2021, UK Finance published a guide on abandoning LIBOR for banks and lenders (“To guide“).

The Guide provides a check on the progress of the LIBOR transition and identifies the actions needed to meet the transition deadline at the end of 2021. The following main topics are covered in each section:

(a)

introduction to shutting down LIBOR;

(D)

discussion of hot topics – fallbacks, difficult legacy contracts, LIBOR currency schedule and withdrawal of new business from LIBOR; and

A helpful checklist is also provided for potential next steps and a smooth transition to LIBOR. Some key considerations include:

1.

the establishment of a LIBOR bridging program;

2.

define the commercial strategy for the transition of existing products and the development of new risk-free rate products;

3.

contract management, which includes identifying affected contracts and developing a remediation strategy;

4.

develop an awareness and communication strategy with clients;

5.

update and revalidate pricing and risk management models;

6.

ensure system readiness;

7.

perform impact assessments for treasury, finance and tax; and

8.

program assurance to ensure that the transition project is in place and functioning effectively.

Please see the full guide here: connect