Changes in the Financial Industry
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’s going to be replaced.
LIBOR was once described as ‘the world’s most important number’ and while most people probably haven’t heard of it before, it’s used as the basis for large numbers of transactions between financial institutions, for example for investments and loans. Its replacement is going to be a similar interest rate, also in everyday use in the financial sector. The replacement interest rate is considered to be more robust and transparent than LIBOR and so, more appropriate for the future.
Financial industry regulators, including the Bank of England, and the financial sector are working together to make the changes as smooth as possible.
Does this impact me?
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