FCA has published the text of a letter sent to the CEOs of wholesale banks.  The letter describes the regulator’s areas of supervisory focus over the next two years, including: the external environment; risk management; control risks; operational resilience; organisational changes; LIBOR transition; the Consumer Duty; ESG; AI; and non-financial misconduct.  FCA expects all CEOs to have discussed this letter with their fellow directors and/or Board and to have agreed actions and/or next steps within two months.

A transition panel discussion was held on 6 September 2023 in which Arif Merali responded to questions.  BoE has published the transcript.  Specific topics include lessons learned from the LIBOR transition and the review of markets in relation to benchmarks.

FCA has published a progress report which proposes, at this stage, not to refer to any of the three markets covered by the study to CMA.  FCA is inviting comment from stakeholders on its decision, to be received by 29 September 2023.  The report also provides an update on the progress of the study, including emerging themes and issues that the regulator is seeing. 

FSB has published a statement on the LIBOR transition which sets out messages for market participants in the post-LIBOR transition landscape.

FCA notes that the US dollar LIBOR bank panel ended on 30 June 2023.  The overnight and 12-month US dollar LIBOR settings have now permanently ceased.  The 1-, 3- and 6-month US dollar LIBOR settings have been designated as Article 23A benchmarks FCA is requiring LIBOR’s administrator, ICE Benchmark Administration, to publish them in synthetic form.  From 3 July 2023, they will be calculated using a synthetic methodology based on the relevant CME Term SOFR Reference Rate plus the respective ISDA fixed spread adjustment. However, as with other synthetic LIBOR rates, these settings are now permanently unrepresentative of the underlying markets they previously sought to measure. They are intended to cease at the end-September 2024.  FCA has published Notices finalising implementation of its decisions which are available to download individually via the following link.

Further to CP22/21, FCA has now published feedback and sets out details of the actions market participants must take before 30 June 2023 deadline.  In addition, FCA has published two technical notices under the UK Benchmarks Regulation (Article 23B and Annex 4 Notices) as part of the implementation of its decisions. Further technical publications shortly after midnight on 1 July 2023 will complete the implementation.  Documents may be accessed via the following link.

ESMA has published its final report on the review of the regulatory technical standards concerning information to be provided in an application for authorisation and registration under the Benchmarks Regulation.

Text of Sarah Pritchard’s speech of 16 May 2023 follows.  Topics include: FCA’s work on listings; FCA’s approach to prospectus reform; LIBOR.

ESMA has published guidance for corporate lending products for implementing the recommendations on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates.

FSB’s statement has been published in order to encourage final preparations for the USD LIBOR transition.