FCA & COVID-19 – no change to scheduled end date of LIBOR

On Wednesday 29 April 2020, the FCA published a statement on the transition away from LIBOR and the impact of COVID-19. The statement reiterates that LIBOR will not be published after the end of 2021 but that "….it will not be feasible to complete transition away from LIBOR…." by the end of Q3 2020, as originally intended. The statement encourages the availability of non-LIBOR linked products by the original Q3 date and notes that lenders should include "clear contractual arrangements in all new and re-financed LIBOR-referencing loan products to facilitate conversion ahead of end-2021" although recognising that the disruption to the economy through the pandemic will inevitably cause focus to move away from LIBOR transition programmes.