Help & support
On 4 December 2020, following discussions with the UK Financial Conduct Authority (FCA) and other official sector bodies, the ICE Benchmark Administration (IBA), the administrator of LIBOR, published a consultation on its intention to cease publication of LIBOR settings either on 31 December 2021 or 30 June 2023, depending on the LIBOR setting. The IBA consulted on these intended cessation dates because a majority of LIBOR panel banks had communicated to the IBA that they would not be willing to continue contributing to the relevant LIBOR settings after such dates. As a result, the IBA considered that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates.
On 5 March 2021, the IBA published a feedback statement on its consultation on potential cessation of LIBOR. In that feedback statement, the IBA stated that it shared and discussed the feedback from the consultation with the FCA. In the absence of sufficient panel bank support, and without the intervention of the FCA to compel continued panel bank contributions to LIBOR, the IBA stated that it is not possible for the IBA to publish the relevant LIBOR settings on a representative basis beyond the intended cessation dates for such settings.
As a result of the IBA not having access to input data necessary to calculate LIBOR settings on a representative basis beyond the intended cessation dates set forth in the table below, the IBA stated that it has to cease publication of the following LIBOR settings immediately after the publication of LIBOR on the below dates unless the FCA exercises its proposed new powers which are included in the current Financial Services Bill as proposed amendments to the UK Benchmarks Regulation (BMR) to require the IBA to continue publishing these LIBOR settings using a changed methodology (also known as a “synthetic” basis).
As nothing in this document should be taken to be advice, we encourage you to seek independent advice on these matters and you should reach your own conclusions and decisions, in consultation with your own advisors. The information in this document might change and we are not undertaking to update it.
This information is published solely for information purposes. It is not to be construed as a solicitation, an offer or recommendation by the Commonwealth Bank of Australia (CommBank). As this information has been prepared without considering your objectives, financial situation or needs, you should before acting on the information, consider its appropriateness to your circumstances. It must not be relied upon as investment research. CommBank believes that the information is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made. Commonwealth Bank of Australia ABN 48 123 123 124. AFSL and Australian Credit Licence 234945.