Update: SONIA set to replace Libor by 2021

Public consultation set to be published in H1 2018

Mike Sheen
clock • 2 min read

The Financial Conduct Authority (FCA) and the Bank of England (BoE) have outlined the "next phase" of plans that will work towards replacing the Libor benchmark with the Sterling Overnight Index Average (SONIA).

From January 2018 the market-led Working Group on Sterling Risk-Free Rates will have an extended mandate and broader participation in making the transition, with public consultation expected to be published in the first half of 2018. SONIA is a near risk-free alternative derivatives reference rate that reflects bank and building societies' overnight funding rates in the sterling unsecured market. FCA bans Libor rigger Hayes The regulator said in a statement the working group's new mandate will be "to catalyse a broad-based transition to SONIA over the next four years across sterlin...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Regulation

A review of the senior managers regime is also on the table, which would lead to an evolution in the regulations rather than an overhaul. | Credit: iStock

UK to boost bank resolution toolkit after SVB collapse shortcomings - reports

City minister Bim Afolami

Cristian Angeloni
clock 08 December 2023 • 1 min read
The FCA noted that the proposals were high-level at this stage, not definitive and reflected early thinking. The regulator said they would evolve based on stakeholder feedback and further engagement.

FCA plans 'new form of simplified advice' in extensive review

Three proposals set as part of major review

Isabel Baxter
clock 08 December 2023 • 6 min read
The NAO highlighted that, although the FCA had required crypto firms to comply with anti-money laundering regulations in January 2020, the regulator did not take any enforcement action against illegal crypto operators until February 2023.

National Audit Office finds 'significant delay' in FCA regulatory action

Financial services report

Cristian Angeloni
clock 08 December 2023 • 3 min read