The Working Group for Sterling RFRs (£RFRWG) issued comprehensive recommendations as to how to calculate and use SONIA in loan agreements, known as conventions. The LMA RFR based facilities agreements include schedules setting out sample drafting for loans in USD, Sterling, CHF and Euro, reflecting these conventions. However, the Sterling conventions do diverge in some areas from the conventions recommended by working groups for other currencies. This Q&A looks at two key areas where the working groups’ recommendations diverge, reference rate floors, and whether to use the observation shift or lag methodology. Where can I find the conventions for USD, CHF and Euro? See ARRC Syndicated Loan Conventions EURIBOR fallbacks and Swiss National Bank—National Working Group for Risk-Free Rates. Are there any key points to note about the recommended conventions? The recommendations by the working groups have been developed within differing contexts. The conventions for using SONIA compounded in arrears were specifically developed for the loan market