FCA's Andrew Bailey: Libor to be phased out by 2021

'Sonia' benchmark an alternative

clock • 2 min read

The scandal-ridden Libor benchmark will be phased out by the end of 2021, to be replaced with a more reliable system by banks, the Financial Conduct Authority (FCA) and other regulators.

Financial markets will not "complete the journey to transaction-based benchmarks if markets continue to rely on Libor in its current form," FCA chief executive Andrew Bailey said in a speech at Bloomberg's London offices on Thursday. The benchmark, which underpins more than $350trn (£266 trillion) of financial products, is not sustainable as as it was no longer "sufficiently active" to determine a reliable rate, according to Bailey (pictured). For example, one currency and lending period amounted to just 15 transactions in 2016. Secret recording implicates Bank of England in Libor rig...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA sounds alarm over finfluencers targeting retail investors with risky CFD options

FCA sounds alarm over finfluencers targeting retail investors with risky CFD options

Some using 'high-pressure techniques'

Eve Maddock-Jones
clock 31 October 2025 • 1 min read
FCA complaints: Pensions and investment gripes on the rise

FCA complaints: Pensions and investment gripes on the rise

Total number of financial services complaints hits 1.85 million

Jenna Brown
clock 23 October 2025 • 1 min read
Updated: Failed financial advice firms tracker

Updated: Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 21 October 2025 • 1 min read