5.29.20
Last Friday, the Bank of England’s “Working Group on Sterling Risk-Free Reference Rates” (Task Force) released a working paper advocating for the British government to pass legislation that would address the legacy contract issue arguing, “it would bring about international consistency in the treatment of tough legacy contracts.” However, the Task Force also recognized that a legislative solution may not be feasible at the time given the growing issues of Brexit and COVID-19 within the country and thus indicated that any other active transition solutions should be implemented in parallel with a proposed legislative solution.