The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have released Joint Communication 1 of 2026, expanding the supervisory expectations supporting South Africa’s transition from JIBAR to ZARONIA. The communication builds on earlier guidance and reinforces the ‘No new JIBAR’ initiative, under which financial institutions should cease issuing new JIBAR‑referencing products from 1 May 2026, except in clearly defined exceptional cases. It outlines minimum expectations on limiting new JIBAR exposure, using ZARONIA for new products, applying strong governance, and ensuring any permitted exceptions do not create additional JIBAR risk.

The MPG has published a suite of resources to support South Africa’s transition from JIBAR to ZARONIA, including the MPG ZARONIA Loan Conventions, the Practical Guide for ZARONIA‑Linked Loans, and ZARONIA Loan Examples, all available via the MPG website. These documents set out recommended conventions for adopting compounded‑in‑arrears ZARONIA in loan documentation.

The MPG has also launched a request for proposals to select an administrator to calculate and publish forward‑looking term ZARONIA rates, targeted for Q2 2026, subject to sufficient market liquidity. This forms a core component of its benchmark transition roadmap.

On 11 March 2026, the LMA submitted a joint response (along with ISDA, GFXD, UK Finance) to HM Treasury’s consultation on the future UK benchmarks regime.

We broadly support the proposed Specified Authorised Benchmarks Regime (SABR), recognising its aim of creating a more proportionate, internationally competitive framework focused on benchmarks whose failure could pose systemic risk. Our response emphasises that while the move toward a narrower, effects‑based regime is positive, aspects of the proposals risk creating ambiguity and unintended cliff‑edge consequences.