Compliance officers will have their hands full as the London Interbank Offered Rate (Libor) transition kicks in. A Q&A published by the Financial Conduct Authority (FCA) on conduct risk during Libor transition to alternative rates puts the onus on the senior manager responsible, but without specifying which one. The legal view is that the SMF 16 could sometimes do the job best and in any case, compliance should be heavily involved.
Rahman Ravelli’s Legal Director Neil Williams commented, “Given the faults which have been laid bare with the public dissection of Libor through the trials which have taken place, now more than ever the role of the compliance officer comes to the fore.”
"Simply proving that there is a compliance procedure in place will no longer satisfy the regulatory requirements. Standards must fall into line with the new 'robust', proactive arrangements now expected by the FCA. It would seem that the screen behind which faults could be hidden and explained has now become a stage, where the full production must be put on show."
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