imported>Doug Williamson |
imported>Doug Williamson |
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| ''Securities - debt - bonds - bond indenture'' | | ''UK and Irish accounting.'' |
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| A consent solicitation is a formal offer by the issuer of a security to change the terms of the security agreement.
| | Financial Reporting Standard 104, 'Interim Financial Reporting'. |
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| For example, a bond issuer might ask bondholders if the terms of a LIBOR-linked bond indenture may be changed, in order to transition to another appropriate benchmark rate.
| | FRS 104, in itself, does not require an entity to prepare interim financial reports. It is intended for use by entities that prepare annual financial statements in accordance with FRS 102 but can also be applied by entities that prepare annual financial statements in accordance with FRS 101. |
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| Consent solicitations are necessary, because security agreements need mutual consent in order for them to be changed.
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| | | Effect for periods beginning on or after 1 January 2015. |
| :<span style="color:#4B0082">'''''Transitioning LIBOR-linked bonds'''''</span>
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| :"The key message for issuers is that they should now be actively transitioning their outstanding LIBOR-linked bonds through consent solicitations or other methods, and clearly communicating their plans to their investors, and in a timely manner.
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| :Investment managers are aware that some issuers have been reluctant to launch proposals for fear of not gathering sufficient support, and would like to make it clear that investors are fully supportive of the transition process.
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| :To this end, the IA's report also includes a list of the key features LIBOR-transition consent solicitations should have in order to maximise the chance of success - these features include strong engagement, awareness of existing regulator and industry body announcements and recommendations, and a clear focus on LIBOR transition as opposed to other matters."
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| :''Hugo Gordon, Policy Specialist, Capital Markets, from The Investment Association - ACT guest blog - 15 July 2021''
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| ==See also== | | ==See also== |
| *[[Benchmark]] | | * [[FRS 100]] |
| *[[Bond]] | | * [[FRS 101]] |
| *[[Bondholder]] | | * [[FRS 102]] |
| *[[Bond indenture]] | | * [[FRS 103]] |
| *[[LIBOR]] | | * [[FRS 105]] |
| *[[Risk-free rates]]
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| *[[The Investment Association]] (IA)
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| *[[Tough legacy]]
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| *[[Transition]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Financial_products_and_markets]]
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UK and Irish accounting.
Financial Reporting Standard 104, 'Interim Financial Reporting'.
FRS 104, in itself, does not require an entity to prepare interim financial reports. It is intended for use by entities that prepare annual financial statements in accordance with FRS 102 but can also be applied by entities that prepare annual financial statements in accordance with FRS 101.
Effect for periods beginning on or after 1 January 2015.
See also
