SONIA complaints and whistleblowing
Complaints about SONIA can be emailed to SONIAcomplaints@bankofengland.co.uk.
We have established a whistleblowing mechanism to facilitate early awareness of potential misconduct or irregularities relating to SONIA.
Whistleblowing is when an employee reports suspected wrongdoing at work. An employee can report things that are not right, are illegal or if anyone at work is neglecting their duties, including:
- someone’s health and safety is in danger
- damage to the environment
- a criminal offence
- a person not obeying the law
- covering up wrongdoing.
Firms are encouraged to consider setting up appropriate internal procedures which will encourage workers with concerns in relation to the SONIA benchmark to blow the whistle.
If your employer does not have an internal whistleblowing procedure, or if you do not feel able to use it, then contact us on +44 (0) 203 461 8703 during office hours. Alternatively, you can email us at SONIAwhistleblowing@bankofengland.co.uk or write to us at: IAWB Team, PRA CCS, Bank of England, 20 Moorgate, London EC2R 6DA.
Legal protection of whistleblowers
Under UK whistleblowing legislation, workers who make ‘protected disclosures’ have certain protection against detrimental treatment by their employer. While some types of disclosure to us are automatically protected in this way, disclosures relating to SONIA are not currently automatically protected.
However, a disclosure by a worker to a person other than their employer (such as to the Bank of England) can be a protected disclosure if it is carried out using a procedure which the worker’s employer has authorised the individual to use. If you are intending to make a disclosure to us in relation to SONIA, you should consider reviewing your employer’s whistleblowing procedures or consulting your workplace’s whistleblowing champion (if there is one) to determine whether your employer has authorised disclosure to the Bank of England.
Whistleblowing to the Financial Conduct Authority (FCA) in relation to misconduct is treated as a protected disclosure. If you would prefer to whistleblow to the FCA, you can call 020 7066 9200 during office hours. Alternatively, you can email firstname.lastname@example.org or write to: Intelligence Department (ref PIDA), The Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.
Note that the above is not a comprehensive statement of the law on whistleblowing. If you are in doubt as to your legal position, consider obtaining independent legal advice. Further guidance on whistleblowing is also available from the UK Government.
We are currently in the process of reforming the SONIA benchmark. These reforms will become effective on 23 April 2018.
The changes are:
- The Bank will produce SONIA, including the calculation and publication as well as being the SONIA administrator.
- SONIA will be broadened to include overnight unsecured transactions negotiated bilaterally as well as those arranged via brokers. We will collect this data using our Sterling Money Market data collection.
- The averaging methodology for calculating SONIA will change to a volume-weighted trimmed mean.
- SONIA will be published at 9am on the business day following the day the rate relates to, allowing us the time to process the larger volume of transactions it will capture.
SONIA Key Features and Policies
Data presented in the SONIA key features and policies document
The Bank has undertaken several rounds of consultation on the reforms of SONIA.
The reform of SONIA - Consultation feedback and the design of SONIA, March 2017
View consultation feedback and the design of SONIA
The reform of SONIA - A supplementary consultation and an update on timing, February 2017
The reform of SONIA - a consultation paper, October 2016
A new sterling money market data collection and the reform of SONIA: public consultation, November 2015
View consultation feedback and the Bank's response
If you have queries relating to SONIA reform, please email email@example.com
Sterling risk-free reference rates
The Bank and FCA are working with market participants to catalyse a transition to SONIA in sterling markets.
In November 2017, the Bank of England and the FCA announced the reconstitution of the Working Group on Sterling Risk-Free Reference Rates:
- The Working Group’s mandate is to catalyse a broad-based transition to SONIA over the next four years across sterling bond, loan and derivatives related markets, so that SONIA is established as the primary sterling interest rate benchmark by end 2021. That reflects concerns about the sustainability of Libor beyond 2021, and follows a recent public consultation which confirmed strong support for SONIA as the preferred sterling RFR.
- For this next phase of work, it is clear that active engagement will be needed from participants across all relevant sectors and markets. Membership of the Working Group has been broadened to include investment managers, non-financial corporates and other sterling issuers, infrastructure firms and trade associations, alongside banks and dealers. The full list of member firms*, as well as the overall selection criteria*, is available on this webpage.
Further expressions of interest in participating in RFR transition work, either as members of technical sub-groups and market sector forums or in order to share views on aspects of the transition, are invited.
This includes expressions of interest from professional services firms, in particular accountancy firms, law firms and financial consultancies where the work would be on a pro bono basis to provide expert input to the working group and related sub-groups.
For more details, please contact RFR.Secretariat@bankofengland.co.uk.
*Please note: Market participants and professional service firms expressing their interest should not use their participation and/or contribution to this work for marketing purposes.
Initial set of criteria for selecting the sterling risk-free rate
If you have queries relating to sterling Risk-Free Rates, please email RFR.firstname.lastname@example.org
In May 2017, the working group announced SONIA as its preferred near risk-free interest rate benchmark for use in sterling derivatives and relevant financial contracts. The Group’s focus has now shifted to the broader adoption of SONIA in sterling markets as an alternative to Libor. It has published a white paper, explaining its choice, but importantly seeking feedback on approaches to adoption and a gaining a better understanding of the views of a broad set of stakeholders.
The views and outputs of the working group are not necessarily endorsed by the Bank of England.
Terms of reference
Membership of the working group
Risk-free reference rate selection criteria
First end-user outreach pack: June 2015
Second end-user outreach pack: December 2015
Design criteria for a sterling secured overnight money market benchmark
Interim report of the working group on sterling risk-free reference rates
Open letter from the Bank of England to the risk-free rate working group
A potential transition of the sterling overnight indexed swap market
White paper: SONIA as the risk-free reference rate and approaches to adoption - June 2017
Term SONIA reference rates sub-group terms of reference
SONIA Futures sub-group terms of reference
Summary White Paper responses
Record – Roundtable on Sterling Risk-Free Rates – 6 July 2017
Pension Funds and Insurance Companies sub-group Terms of Reference
Sub-Group on Benchmark Transition Issues in Bond Markets Terms of Reference
Sub-Group on Benchmark Transition Issues in Syndicated Loan Markets Terms of Reference