Global transition roadmap for LIBOR published by FSB
On 16 October 2020, The Financial Stability Board (FSB) has published a global transition roadmap for LIBOR.
The roadmap sets out a timetable of actions for financial and non-financial sector firms to take in order to ensure a smooth LIBOR transition by the end of 2021.Firms should have already identified and assessed all existing LIBOR exposures and agreed on a project plan to transition in advance of end-2021.By the effective date of the ISDA Fallbacks Protocol, the FSB has strongly encouraged firms to have adhered to it.
By the end of 2020, firms should be in a position to offer non-LIBOR linked loans to their customers.
By mid-2021, firms should have established formalised plans to amend legacy contracts where this can be done, and have implemented the necessary system and process changes to enable transition to robust alternative rates.
By the end of 2021, firms should be prepared for LIBOR to cease and conduct business in alternative rates or be in a position to switch rates efficiently.