July 16, 2013

Dates to be aware of

From 1 July 2013: LIBOR submissions no longer immediately viewable.

The BBA announced in April 2013 that from 1 July 2013, individual LIBOR submissions from banks will no longer be immediately viewable. (This is to implement the Wheatley Review recommendation stating that the BBA should only publish individual LIBOR submissions after three months to reduce the potential for submitters to attempt manipulation.).  Almost nine months on from the publication of the Wheatley Review of LIBOR and the practical impact on the loan market of the proposed reforms is stepping up a gear. The discontinuation of screen rate LIBOR for some currencies and maturities is taking full effect, leading to a search for acceptable replacements. There have been unexpected problems for the customary Reference Bank contingency measure which is also under pressure from other aspects of the reform process. All the while US regulators are pushing for a complete replacement of LIBOR.

From 1 July 2013: changes to BoE cash ratio deposit scheme affecting mandatory costs calculations became effective.

Any change to the ratio of deposits required to be placed at the BoE, or to the deposit threshold under the scheme, will affect the calculation of mandatory costs on sterling loans contained in a typical loan agreement and charged to the borrower.

15 July 2013: FATCA Registration Portal available.

Final regulations issued by the US Treasury Department and IRS on FATCA indicate that foreign financial institutions (FFIs) will be able to register and maintain their registrations, agreements and certifications through the FATCA Registration Portal, which will be available no later than 15 July 2013. (The IRS will post the first list of participating FFIs and registered deemed-compliant FFIs on 2 December 2013 (updated monthly from that date). An FFI must register with the IRS by 25 October 2013 to insure its inclusion on the 2 December 2013 list.)

For further details on any of the issues covered in this update please contact Angela Stallard, Partner in Corporate and Commercial Department on 020 7583 2222 or [email protected] 

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