FCA to gain new powers to tackle ‘tough legacy’ issues in Libor transition
Untangling complex legacy issues is looking increasingly difficult as delays mount due to Covid-19
The UK’s Financial Conduct Authority is to gain new powers to deliver an orderly transition away from the Libor benchmark, as issues mount over “tough legacy” contracts.
In a statement today (June 23), chancellor Rishi Sunak said the government planned to legislate to allow the FCA to mandate a change to the Libor methodology, “where action is necessary to protect consumers and/or to ensure market integrity”.
The move is designed to help the FCA smooth out the transition, particularly where
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