House of Commons · Written Ministerial Statement
Financial Services Regulation
23 June 2020 · Treasury
Proposed by Rishi Sunak Con Richmond and Northallerton
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government plans to amend the Financial Services Bill to grant the FCA powers for managing the wind-down of LIBOR.
- Firms are required to transition away from using LIBOR as a reference rate in financial contracts.
- The FCA will engage with industry and issue policy statements before using its new regulatory powers.
Issue summary
The statement addresses the need for firms to transition away from LIBOR as a reference in financial contracts and outlines the government's intention to legislate to support this transition.
Action requested
The Government intends to amend the existing regulatory framework through legislation in the upcoming Financial Services Bill, granting the FCA powers to manage the wind-down of LIBOR by end-2021. The FCA will engage with industry and issue statements of policy before exercising new powers.
Key facts
- The Working Group on Sterling Risk-Free Rates (RFRWG), the Financial Conduct Authority (FCA) and the Bank of England published joint statements on March 25th and April 29th regarding LIBOR transition.
- The FCA’s voluntary agreement with LIBOR panel banks will expire after end-2021, announced in 2017.
- Legislation aims to strengthen regulatory powers for managing a wind-down period before eventual cessation of LIBOR by the end of 2021.