This guide is intended for business customers with LIBOR-linked loans to help you understand:

• the anticipated discontinuation of the benchmark rate LIBOR
• why LIBOR is being discontinued, and
• what you should expect to hear from your bank or lender in the coming months.

The discontinuation of LIBOR represents a fundamental change within the banking and finance industry and may impact you as a borrower. This guide is focused on business borrowing, but your business may have other commercial contracts that reference LIBOR that could require your attention but. This guide is provided to help you understand the changes; however, it is not a substitute for financial or legal advice. This is an updated version to UK Finance's November 2019 guide and reflects recent developments including updated timelines.

Market participants are working closely with the Bank of England and the Financial Conduct Authority (FCA), who together oversee the administration and regulation of benchmark interest rates in the UK, to catalyse the transition away from LIBOR in sterling markets. In 2015 the Working Group on Sterling Risk Free Reference Rates, consisting of market participants with the Bank of England and FCA as ex-officio members, was set up to catalyse a market-led transition away from LIBOR. This includes identifying and resolving issues which may adversely impact lenders and borrowers, to ensure the transition is as smooth as possible.