We are consulting on how we propose using two new powers introduced through amendments to the Benchmarks Regulation (BMR) under the Financial Services Act 2021 (FS Act).
Why we are consulting
We are seeking views on how we propose using two new powers relating to the use of critical benchmarks that are being wound down. The powers are part of a wider package of amendments to the BMR in the FS Act intended to ensure that we have the appropriate regulatory powers to help reduce risk in the wind-down period before LIBOR ceases permanently.
Who this applies to
This Consultation Paper (CP) will interest users of critical benchmarks such as LIBOR, whether those users are regulated or unregulated. This includes:
- banks and building societies
- investment managers
- life insurance and pension providers
- mortgage lenders and intermediaries
- corporates of all sizes
- consumers who have mortgages or other consumer loans that use critical benchmarks
It will also interest administrators of critical benchmarks.
Next steps – 29 September 2021 update
Following this consultation, we published statements of policy on our legacy use power over critical benchmarks and on restricting new use of critical benchmarks, and the feedback statement to CP21/15.