Australia: Feedback on Financial Institutions’ Preparation for LIBOR Transition
In May 2019, the Australian Securities and Investments Commission (ASIC) wrote to the CEOs of selected major Australian financial institutions regarding the end of the London Interbank Offered Rate (LIBOR).
The initiative – supported by the Australian Prudential Regulation Authority, and the Reserve Bank of Australia – requested information to better understand how these financial institutions were preparing for the end of LIBOR.
ASIC has now released feedback on responses to the ‘Dear CEO’ letter.
The feedback highlights the need for all institutions to plan for LIBOR transition, the aspects to consider in transition and the importance of addressing the related issues early.
The regulators encourage financial and corporate institutions in Australia to read the feedback, consider the implications of transition for their own situation, and plan accordingly for the end of LIBOR.
The institutions are also encouraged to communicate and highlight the potential impacts of LIBOR transition to their stakeholders, including end consumers, to raise awareness of the issues more broadly.
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