Regulation 15 Critical benchmarks: review of critical benchmarks

Before Article 20 (critical benchmarks) insert—

“Article A20

Critical benchmarks: review of critical benchmarks

1.

The FCA must conduct a review of critical benchmarks in accordance with paragraphs 2 to 4.

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 point (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 exit 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.”.