CP 19/31: Extending the Senior Managers Regime to Benchmark Administrators

Open consultation: CP19/31
Consultation closes

The Senior Managers Regime (SMR) will come into force for benchmark administrators on 7 December 2020. This consultation sets out our proposals for applying the SMR to benchmark administrators that do not carry out any other regulated activities.

Read CP19/31 (PDF)

Why we are changing

Firms that carry out benchmark activities alongside other regulated activities should refer to this page for information on how the Senior Managers and Certification Regime (SM&CR) will apply to them. The SM&CR will apply to these firms from 9 December 2019.

The SMR will come into force for firms that only administer benchmarks on 7 December 2020. This consultation explains how we propose to:

  • not apply the Certification Regime to benchmark administrators 
  • categorise benchmark administrators under the SMR as ‘Core’ firms initially, with the option of subsequent waivers
  • require them to allocate up to 4 Senior Manager Functions, depending on their governance structure
  • require them to apply the Conduct Rules to almost all their employees

Additionally, after 9 December 2019, the existing Approved Persons Regime will no longer apply to firms authorised under FSMA, and will only apply to Appointed Representatives. The consultation proposes some consequential changes to our rules to make this clear.   

Who this applies to

  • benchmark administrators 
  • Appointed Representatives and their principals

Next steps

This consultation has now closedWe will consider your comments and publish final rules.