<p><span>The Working Group on Sterling Risk-Free Reference Rates, which is comprised of a diverse set of market participants, is working to catalyse a broad-based transition to SONIA by end-2021.</span></p>
Brexit
Please see our Brexit financial services webpage, which contains, amongst other things, tables detailing Brexit statutory instruments, equivalence decisions, EEA transitional regimes and UK regulators’ publications.
Capital Markets
Please see our Markets and Markets Infrastructure section for an update on the Council of the EU adopting amendments to MiFID II and the Prospectus Regulation in view of Covid-19.
Consumer/Retail
FCA consults on extending guidance on cancellations and refunds
On 12 February, the FCA published a consultation on guidance on cancellations and refunds, specifically regarding helping consumers with rights and routes to refunds. The FCA explains that on 2 October 2020, it published temporary guidance setting out its expectations for insurance providers and card providers to reduce consumer confusion and frustration by outlining its expectations of firms to provide more information and make the consumer journey easier. Currently, the guidance is ef
Capital internal models: PRA statement on 2021 supervisory benchmarking exercise - The UK Prudential Regulation Authority (PRA) has published a statement to provide greater.
United Kingdom: HM Treasury consults on regulatory approach to cryptoassets and stablecoins
On 7 January 2021 HM Treasury (HMT) published a combined consultation paper and call for evidence on the regulatory approach to cryptoassets and stablecoins.
In outline, the consultation proposes:
A policy approach that would involve specific requirements being implemented by independent regulators (e.g. via rules or codes of practice) within a wider framework of objectives and considerations set out by HMT.
Expansion of the regulatory perimeter, with the introduction of a regulatory framework for “stable tokens” (i.e. tokens which maintain a stable value by referencing asset(s)), drawing on existing e-money and payments legislation. The FCA would authorise and supervise relevant entities carrying out certain activities in the UK. A stable token arrangement could also be subject to Payment Systems Regulator (PSR) and Bank of England regulation under certain circumstances.
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2020 was a busy year for global benchmark transition, and the coronavirus pandemic did little to slow the pace. The end of 2020 saw an unexpected development that caused the market to pause – the potential delay of the cessation of all but two of the USD LIBOR tenors from the end of December 2021 to the end of June 2023.
In 2021, we continue preparing for the replacement of LIBOR. Our next “Latest from the LIBOR Front” webinar is set for Thursday, 4 February 2021 and Scott O’Malia, ISDA CEO will join us for our next LIBORcast.