The IBOR Transition Digest is a periodic compendium of global regulatory and market developments and insights on the complex issues confronting financial market participants as they continue to transition from LIBOR and its variants to replacement benchmark interest rates. As the market moves to the next phase of IBOR transition, it is critical to have access to comprehensive and timely resources about the market.
SEC Exam Staff Issues LIBOR Transition
Risk Alert for Investment Advisers and Investment Companies
In Brief, 15 May 2023
Two LIBOR transition practices that the SEC staff noted relate to other areas of recent regulatory focus for the SEC and its staff: oversight of service providers and conflicts of interest.
UK's FCA Decision on Synthetic US
In Brief, 5 April 2023
On 3 April 2023 the UK Financial Conduct Authority announced its decision to continue the publication of the 1-, 3- and 6-month USD LIBOR settings, using an unrepresentative 'synthetic' methodology, through 30 September 2024 for use in legacy LIBOR instruments only that do not fall within the scope of the Adjustable Interest Rate (LIBOR) Act.
View all of our IBOR transition thought leadership under the Perspectives tab of our IBOR Transition portal page and on our Eye on IBOR Transition blog.
NEWS AND DEVELOPMENTS
United States – General
Observations from Examinations of
Investment Advisers and Investment Companies Concerning
Securities and Exchange Commission Division of Examinations, 11 May 2023
The SEC noted that the preparation efforts and transition practices of the registered investment advisers and investment companies that were examined varied considerably, depending on the type and amount of LIBOR exposure. The SEC observed that firms have engaged actively with third party service providers to assess and manage exposure and communicate transition plans, and have considered conflicts of interest related to the transition as part of their assessment and planning, including cross-trading, principal transactions, allocation of transition costs, and clients with conflicting priorities.
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