Globally, financial benchmarks are being reformed. In many jurisdictions, Risk-Free Rates (RFRs) are expected to eventually replace certain Interbank Offered Rates (IBORs) —including the London Interbank Offered Rate (LIBOR). In other jurisdictions, IBORs are being reformed and will continue to exist — albeit in an altered format.
It's important that you consider how benchmark reforms could impact any products you hold, may acquire, or any transactions that you have or may enter into with us (or any of our group companies) where such a product or transaction references an impacted IBOR.
Impacted IBORs may be subject to methodological or other changes, which could modify the value of the IBOR. In some instances, they could cease to exist (as is expected in the event of the LIBOR). In other cases, the IBORs may not be reformed enough — meaning they can no longer be used in certain jurisdictions (for example under the European Union Benchmark Regulation).
These consequences will impact products and transactions that you may hold or enter with us or any of our group companies.
In addition to the general disclosure above, please consider the following specific disclosures.
This does not constitute as legal advice relating to the use, change or reform of an IBOR. You should conduct your own investigations to ensure you understand the IBORs referenced in any product or transaction that you may use, the reforms, and the consequences thereof.
You should also consider that the replacement of an IBOR (or potentially the change of value in an IBOR) in any product or transaction may also carry tax, accounting and regulatory risks.
We encourage you to seek independent expert advice, which may include legal, financial, tax, accounting or regulatory guidance.