News & Insights

UK Finance guide to LIBOR discontinuation for Banks and Lenders

On 12 February 2021, UK Finance published a guide to LIBOR discontinuation for banks and lenders (“Guide”).

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


introduction to LIBOR discontinuation; 


introduction to new reference rates and their differences from LIBOR; 


examination of the role of working groups and regulators in the transition;


discussion on hot topics – fallbacks, tough legacy contracts ,the LIBOR currency timeline and moving new business off LIBOR; and


overview of the transition from a commercial and operational perspective. 

A useful checklist is also provided for potential next steps and transitioning smoothly away from LIBOR. Some key considerations include: 


setting up a LIBOR transition programme;


defining business strategy for transitioning legacy products and developing new risk-free rate products;


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


developing a client outreach and communication strategy;


updating and re-validating pricing and risk management models;


ensuring system readiness;


performing impact assessments for treasury, finance and tax; and


a programme assurance to ensure that the transition project is set up and operating effectively. 

Please see the full Guide here: link

Related Services and Sectors:

Banking and Finance

Portfolio Builder

Select the legal services that you would like to download or add to the portfolio

Download    Add to portfolio   
Title Type CV Email

Remove All


Click here to share this shortlist.
(It will expire after 30 days.)