JIBAR to ZARONIA Transition Supervisory Expectations

The SARB Prudential Authority published Joint Communication 1 of 2026 on March 24, 2026, setting out supervisory expectations for financial institutions transitioning from JIBAR to ZARONIA. This joint communication specifically addresses the 'No new JIBAR' initiative, which prohibits the creation of new JIBAR-referenced contracts after a certain date to facilitate an orderly transition to the new overnight reference rate. The document provides guidance on what the Prudential Authority expects from regulated entities during this transition period.

Financial institutions should review this communication immediately to understand supervisory expectations for their JIBAR-to-ZARONIA transition planning. Banks and financial advisers should assess their exposure to JIBAR-referenced contracts, develop transition roadmaps, and ensure systems are prepared for ZARONIA adoption. Compliance teams should coordinate with treasury, risk, and legal functions to ensure comprehensive transition readiness. No specific compliance deadline or penalty information is provided in this communication.