Benchmark administrators and supervised contributors are supervised by the Benchmarks Supervision team, a specialist team within our Wholesale Supervision division.
Approach to supervision
Our Approach to Supervision was published in April 2019 following a consultation.
In January 2020, we issued a portfolio letter to all benchmark administrators in our portfolio, outlining our areas of focus regarding the potential for harm, as well as the underlying drivers of those harms posed by benchmark administrators to their customers and the markets in which they operate.
Information for benchmark administrators
The Benchmarks Regulation (BMR) governs benchmark administrators, ensuring the accuracy and integrity of benchmarks.
Extension of the Senior Managers Regime to benchmark administrators
On 2 June 2020 we published our response to the feedback to our consultation paper CP19/31 Extending the Senior Managers Regime to benchmark administrators. This also sets out the final rules and guidance we are publishing following the consultation.
The Senior Managers Regime (SMR) and Conduct Rules came into force for benchmark administrators that don't undertake any other regulated activities on 7 December 2020.
Low carbon benchmarks and sustainability-related disclosures
The amendments to the EU Benchmarks Regulation (BMR) as part of the Sustainable Finance Action Plan (low carbon benchmarks and ESG disclosure) came into effect in November 2019.
The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2020 made amendments to these provisions, so they will operate effectively in the UK following the end of the transition period.
The EU Commission has adopted 3 delegated acts that sit beneath these changes to the EU BMR, which came into force on 23 December 2020 and form part of domestic law.
The published texts of the delegated acts can be found at the following links:
- Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published
- Commission Delegated Regulation (EU) 2020/1817 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the minimum content of the explanation on how environmental, social and governance factors are reflected in the benchmark methodology
- Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks
We will continue to engage with the Treasury to make sure these delegated acts operate effectively in the UK.
We also remind firms of existing transparency requirements under the BMR. Where ESG factors are a key element of a benchmark's methodology, you should consider whether existing disclosure material should contain information about them, as appropriate.
The BMR does not require an authorised administrator to notify us of new benchmarks or families. However, if you wish to do so, you may update the benchmark schedule you used during the authorisation/registration process and send it to us via email.
You must notify us if you wish to apply any exemptions in relation to your new benchmarks in accordance with Articles 25(1) and 26(1) of the BMR.
Articles 26(2) and 24(3) of the BMR require administrators to notify us in the event their benchmarks change categories, ie they move from significant to non-significant and vice versa.
Article 20(1A) of the BMR requires administrators to notify us if a benchmark they administer reaches the critical benchmark thresholds set out in Article 20(1).
In addition, we would be grateful if you could inform us:
- if you intend to or begin to administer a significant benchmark
- if you intend to or begin to administer a benchmark with contributors
For any notification in respect of exemptions, changes or updates to existing benchmark categorisations or types you should notify us at [email protected].
For regulatory enquiries specifically related to benchmarks, contact our Benchmarks Supervision team via email at [email protected].
For general queries, including general regulatory questions, you can get in touch with our contact centre.
13/05/2020: Information added Sustainability-related disclosure requirements