Neil Bloomfield, Rob Kenny, and Zack King joined with Jim Blair from WCM Global Wealth for a presentation to the Association of Corporate Counsel on a future of the markets where LIBOR may no longer exist. In a speech on July 27, 2017, Andrew Bailey, the Chief Executive of the U.K. Financial Conduct Authority (“FCA”), discussed the future of LIBOR. Mr. Bailey explained that work must begin in earnest to plan for the transition away from LIBOR. He explained that the FCA had spoken to “current panel banks about agreeing voluntarily to sustain LIBOR for a four to five-year period, i.e. until end-2021.” This speech has led many to believe they will need to transition away from LIBOR as a reference rate by 2022.
The panel addressed the challenges this transition presents. Mr. Bloomfield discussed the concerns with LIBOR raised by the investigations and findings of the various government authorities based on his experience in representing one of the submitting banks during the global investigations. Mr. King provided an overview of the transition plans being discussed in the U.S. and Mr. Kenny discussed how to document financial instruments in the current climate where the future of LIBOR is uncertain. Mr. Blair moderated the panel and provided insight as a market participant.
Neil Bloomfield has more than a decade of experience advising major financial institutions, and other highly regulated entities in responding to government investigations, including responding to global investigations into LIBOR and other reference rates, foreign exchange trading, and the allegations raised by the Panama Papers. He also frequently advises clients as they implement programs to comply with regulatory requirements, including requirements created by Recovery and Resolution Planning and CCAR.