Global regulators have communicated that organizations should expect that the London Interbank Offered Rate (LIBOR) is unusable or unavailable by the end of 2021. It is a matter of how LIBOR will end rather than if it will end. Education is vital to ensure an orderly and broad-based transition. Former United States Federal Reserve Chair Janet Yellen commented on SOFR Academy, “This is an important project and much needed.”
This transition to new alternative rates will create benefits for market participants. At SOFR Academy, we view LIBOR transition as a strategic opportunity to strengthen client relationships, streamline processes and future proof an organizations products and services. New alternative reference rates are not economically equivalent to LIBOR which means significant transformation efforts are required by market participants.
Transformational Change. Transforming Leaders.
Offer new Alternative Rate linked products to expand client service offering, satisfy client demand and protect wallet share. Protect existing product revenues when fallback language is triggered and LIBOR is no longer published.
World-class training and development programs. Organizations should leverage LIBOR transition as an opportunity to drive firm-wide objectives. Content developed by LIBOR transition experts backed by leading Academics.
Organizations should use LIBOR transition as an opportunity to strengthen client and customer relationships. Organizations should empower client facing staff with information to educate their clients to support an orderly market wide transition.
SOFR Academy was founded by LIBOR transition specialists involved in National Risk-Free-Rate working groups. We possess both a theoretic and practical understanding of interest rate products across both cash and derivatives gained over decades of Financial Services experience.
Directors of SOFR Academy maintain relationships with the LIBOR transition community. This includes regular conversations with LIBOR transition program leads at Financial Institutions, Regulators, industry and trade associations and market intermediaries.
SOFR Academy reserves the right to award the SOFR Academy CertificationTM (SAC) upon successful completion of certain courses and requirements. Course content is updated in concert with industry developments. The SAC is the leading industry certification for USD LIBOR to SOFR transition.
Unique, world class quality, self paced, online programs aimed at building leaders in LIBOR transition. Our flexible learning increases employee engagement and optimizes learning outcomes.
Tailored Executive Education sessions to equip leaders within an organization with the information required around benchmark reform. These sessions are generally aimed at Senior Executives.
Access to LIBOR transition Subject Matter Experts (SME) enables customized programs and solutions designed to address an organization’s unique business challenges and education requirements.
Seamless multi-device learning experience deployable across platforms. SOFR Academy is an Amazon Web Services Educate member institution providing access to a gateway of next generation technology and resources.
Targeted training modules, customizable content with flexible focus, self assessments, content updated dynamically in line with industry developments, access to insights and publications.
Industry recognized SOFR Academy Certification (SAC) upon successful completion of certain required modules. Leading certification for USD Benchmark Reform in the United States.
SOFR Academy courses are self paced, dynamic, and available anywhere and anytime via our Learning Management Software delivery channels.
Education on LIBOR transition is a key regulatory requirement. Results and analysis helps track progression of LIBOR transition knowledge within your organization and allows management to identify areas for improvement.
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SOFR Academy is the premier organization committed to advancing the professional knowledge, skills and experience of those dedicated to the successful transition from USD LIBOR based products to new alternative rates. SOFR Academy achieves its mission through educating professionals in private and government organizations about LIBOR transition practices and certifying the achievements of our members.
As LIBOR transition impacts financial and non-financial institutions and societies as a whole, the challenge and the need to develop experts in risk free rates and alternative rate products intensifies. The SOFR Academy CertificationTM (SAC) credential identifies those who earn it as possessing specialized LIBOR transition knowledge. Financial professionals who earn the SAC designation position themselves to be leaders in the industry and valuable assets to their organizations.
Our mission is to build leaders in a SOFR-based financial ecosystem for our clients, businesses and communities.
We place our clients interest ahead of our own and adhere to high ethical standards. We place a very high value on our integrity which builds trust with our clients. We are committed to delivering excellence in everything we do.
We believe in empowering clients by equipping them with LIBOR transition capabilities. We believe that we will be successful if our clients are successful. We create knowledge leaders in LIBOR transition for our clients.
We have established a reputation as leaders at the forefront of LIBOR transition through industry engagement and National Risk-Free-Rate Working Group participation – we are committed to maintaining this reputation.
Transition Plan Quality Assurance
SME Retainer Support
The SEC has issued a Risk Alert identifying registrant preparedness for the transition away from LIBOR as an examination program priority for FY 2020
The FDIC’s Supervisory Insights focuses on LIBOR transition and states that LIBOR is also important to smaller community banks and savings institutions.
The CFTC has set up a subcommittee to focus on LIBOR transition and has delivered numerous speeches on LIBOR transition.
The Federal Reserve has communicated consistently that they “will expect to see an appropriate level of preparedness at banks” they supervise.
The US Treasury Borrowing Advisory Committee discussed the importance of SOFR linked debt issuance and agreed to investigate this market further.
The FHFA has instructed the GSE banks that it supervises to accelerate their transitioning away from LIBOR towards alternative reference rates.
The OCC has communications that preparation for the potential phase-out of the LIBOR will be part of its 2020 Bank Supervision Operating Plan.
The FASB has proposed guidance to avoid unintended income statement volatility during the transition away from LIBOR to new reference rates.
Investment banks face a significant and complex transition away from LIBOR. Derivatives comprise the largest portion of the $350 trillion in outstanding optional of LIBOR.
LIBOR is embedded within many consumer products including Adjustable Rate Mortgages (ARM), auto loans, student loans and credit cards.
E-brokers will need to transition products like margin loans and will also face significant challenges in valuing positions off of a new SOFR based yield curve.
Interest rate hedges are a key area where LIBOR is utilized by insurers. A new SOFR based yield curve will also have valuation and technology implications.
Regional and Community banks reference LIBOR in traditional cash products like vanilla corporate and consumer loans but also in certain securitized products that they may transact in.
LIBOR is deeply embedded within many buy side organizations. They face particular challenges from this transition, including their diversity of asset classes, dependence on third parties, and complex investor base.
The impact on Pension funds will be broad ranging. From portfolio re-balancing, trade settlement, and accounting to infrastructure and technology enhancements.
Credit Unions need to demonstrate to their deposit holders and regulators that they are prepared for the transition particularly in relation to consumer products in which they transact.
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