Libor transition deadline has some compliance teams scrambling (IGNITES)

Some money managers and fund companies are not yet prepared for the fast-approaching required Libor transition, which must occur by June 30th. While many firms have plans in place to transition away from the interest rate benchmark, others are unprepared and according to the SEC, have issues with conducting risk analyses and examining their contracts and products. These are likely smaller firms that may lack the operational bandwidth needed to comply, stated Amy Lynch, FrontLine’s Founder and President. She further comments that the mutual fund industry should be most prepared for the transition because of its traditional structure, while failures may be more common at the investment advisory level or where there are insufficient compliance resources. See IGNITES (subscription required), “Not Ready for Libor? Your Firm Is ‘Behind the Eight Ball'”