Changes within the financial sector don’t usually get much coverage. One which might, is about LIBOR. LIBOR stands for London Interbank Offered Rate and is an interest rate, widely-used by financial institutions. And it has been replaced.
LIBOR was once described as ‘the world’s most important number’ and while most people probably haven’t heard of it before, it was used as the basis for large numbers of transactions between financial institutions, for example for investments and loans. The replacement is called SONIA, the Sterling Overnight Index Average. SONIA is is published and administered by the Bank of England and widely regarded as a reliable market standard for interest rates in day-to-day use.
Financial industry regulators, including the Bank of England, and the financial sector are working together to make the transition as smooth as possible.
This is an industry wide change and you don’t need to do anything. If you do have investments that are directly affected, we’ll contact you to let you know.
You can read more about the LIBOR changes here.