On Wednesday 19 September, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) wrote to CEOs of major banks[1] and insurers[2] supervised in the UK asking for the preparations and actions they are taking to manage transition from LIBOR to alternative interest rate benchmarks. The purpose of the letters is to seek assurance that firms’ senior managers and Boards understand the risks associated with this transition and are taking appropriate action now so that firms can transition to alternative rates ahead of the end of 2021.
These letters were sent to the largest banks and insurers in the first instance. Firms which have not received a direct email from their supervision team linking to the letters are not within scope of this request, however we encourage all firms that currently rely on LIBOR to read and reflect on this letter. The continued participation and commitment of market participants to address the various challenges during this transition will be an essential part of the success of this collective effort. The Bank of England, PRA and FCA are grateful to firms for their engagement with this market-led transition effort to date.