With European and national regulators focussing on the transition to new risk-free rates (RFRs), this paper highlights the factors impacting the industry, what buy-side firms should consider and where they should start.

The majority of sell-side firms are planning for the transition. However, KPMG professionals have so far seen fewer buy-side firms thinking about the impact the transition will have on their clients’ portfolios, and their agreements with counterparties and provider agreements.

Given the scale and complexity of this transition, early action should be a priority for firms.