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

Dennis Hall's open letter to the FCA: Time to retire RU64

Dennis Hall's open letter to the FCA: Time to retire RU64

'The rule is particularly misaligned with client expectations'

Dennis Hall
clock 01 May 2025 • 2 min read
Complaints against financial services firms fall below 1.8 million

Complaints against financial services firms fall below 1.8 million

All major product groups saw fewer complaints

Sahar Nazir
clock 30 April 2025 • 2 min read
FCA backs artificial intelligence with live testing service

FCA backs artificial intelligence with live testing service

Wants AI to keep the UK competitive

clock 29 April 2025 • 2 min read