LONDON, Feb 27 (Reuters) - Asset managers must take immediate steps to write and implement plans to stop using the Libor interest rate benchmark in financial contracts, Britain’s Financial Conduct Authority said on Thursday.
The London Interbank Offered Rate or Libor, which banks were fined billions of dollars for trying to rig, is set to cease by the end of 2021, the watchdog said in a “Dear CEO” letter to asset management bosses.
The rate is used for pricing trillions of dollars of swaps, futures and loans worldwide.
“If your firm has Libor exposures or dependencies, your transition activities should now be underway,” the FCA said.
“If Libor transition is not yet underway at your firm, we expect you to take immediate action to develop and to begin to execute an appropriate plan.”
Reporting by Huw Jones; editing by Carolyn Cohn