Regulation 15 Critical benchmarks: review of critical benchmarksI1

Before Article 20 (critical benchmarks) insert—

“Article A20

Critical benchmarks: review of critical benchmarks

1

The FCA must conduct a F1proportionate review of critical benchmarks in accordance with paragraphs 2 to 4 F2, taking into account information provided to it under paragraph A1 of Article 20.

2

The review must consider:

(a)

whether an administrator located in the United Kingdom provides a benchmark that either:

(i)

satisfies one or more of conditions (a), (b) or (c) of paragraph 1 of Article 20; or

(ii)

satisfies only F3points (c)(ii) and (iii) of paragraph 1 of Article 20; and

(b)

where a benchmark satisfies point (a)(i) or (ii) of this paragraph, whether the FCA recommends that the benchmark is recognised as critical.

3

The FCA must provide a written report to the Treasury:

(a)

setting out the result of the review; and

(b)

making a recommendation as to whether any benchmark that satisfies point (a)(i) or (ii) of paragraph 2 should be recognised as critical.

4

The FCA must conduct the review and provide the report to the Treasury:

(a)

within the period of two years beginning with F4IP completion day; and

(b)

thereafter, at intervals of at least every two years, with each interval beginning with the date on which the last report was provided.

5

The Treasury must by regulations specify that a benchmark is critical if:

(a)

the FCA has recommended that the benchmark is recognised as critical in accordance with the review procedure specified in paragraphs 2 and 3; and

(b)

the Treasury determines that the FCA's review complies with the requirements of paragraphs 2 and 3.

6

The Treasury may by regulations specify that a benchmark is critical if:

(a)

the benchmark is provided by an administrator located in the United Kingdom; and

(b)

the Treasury considers that the benchmark either:

(i)

satisfies one or more of conditions (a), (b), or (c) in paragraph 1 of Article 20; or

(ii)

satisfies only the criteria in point (c)(ii) and (iii) in paragraph 1 of Article 20.

7

The Treasury may not specify a regulated-data benchmark as a critical benchmark under paragraph 5 or 6 of this Article or under paragraph 5 of Article 20.”.