FTI Consulting announces Libor Transition Task Force

Global business advisory consultancy FTI Consulting has announced the launch of a Libor Transition Task Force.

Libor, typically written in all-capital letters, is an acronym for London Interbank Offered Rate. It is an average of interest rates submitted by leading banks in London, and currently is the most common source used to adjust variable-rate loans and credit cards. It is also used by world banks when charging one another for short-term loans. As of 2021, the UK Financial Conduct Authority (FCA) will no longer require banks to publish these rates.

FTI’s announcement of the task force comes at the advice of both the US Securities and Exchange Commission and the FCA, which are encouraging public companies affected by the move away from mandatory Libor publication to assess risk exposure, financial impact, and effectively plan for the transition.

The Libor Transition Task force will be headed by John Klick, a member of FTI’s executive committee, as well as other experts from the firm’s core disciplines: Frank Risler, William Nolan, Marc Walby, Colleen Hsia, and Ryan Drimalla.  

“The transition away from Libor is a complex and sweeping market event that is continually evolving as new developments arise from industry working groups and regulators. FTI Consulting’s breadth of expertise enables us to provide dynamic, customized end-to-end solutions for clients faced with this transition,” Klick said. “FTI Consulting is well-positioned to help clients protect against potential risks that arise from financial exposures, process disruption, miscommunications, litigation and regulatory actions.”

The task force will focus on advising affected stakeholders on several issues relating to the shift in reference rates. For one, it will identify and inventory firms’ Libor exposure. This will allow organizations to create fallback plans and remediate or renegotiate contracts that require attention. FTI will also leverage Quantum, a risk-management system that will support its clients throughout the transition. Additionally, FTI’s task force will work to develop enterprise-level communications within its clients organizations, ensuring that all affected have the information they need to anticipate, prepare for, and respond to the effects of the Libor transition.

FTI Consulting is headquartered in Washington, DC. The firm employs more than 4,700 people in 28 countries. It works in areas including change management, risk mitigation, and dispute resolution in a variety of areas – legal, political, financial, and regulatory among them.