Featured Product

    FCA Consults on Application of SMR to Benchmark Administrators

    November 29, 2019

    FCA launched a consultation (CP19/31) on how to apply the Senior Managers Regime (SMR) to benchmark administrators that do not carry out any other regulated activities. The comment period for this consultation expires on February 28, 2020 and FCA expects to finalize its approach by the third quarter of next year. Benchmark administrators are a new category of authorized firms; therefore, they have been granted a one-year extension from the wider roll out of the SMR. The new rules will come into force on December 07, 2020.

    The SMR sets important standards for governance and accountability and will apply to almost all FCA-regulated firms from December 2019. In this consultation, FCA explains how it proposes to:

    • Not apply the Certification Regime to benchmark administrators
    • Categorize benchmark administrators under the SMR as "Core" firms initially, with the option of subsequent waivers
    • Require benchmark administrators to allocate up to four Senior Manager Functions, depending on their governance structure
    • Require benchmark administrators to apply the Conduct Rules to almost all their employees

    FCA proposed that all benchmark administrators be automatically classified as "Core" firms under the regime. However, recognizing that benchmark administrators vary in size and complexity, FCA is proposing that benchmark administrators can use the existing waiver process of FCA to apply for "Limited Scope" categorization, if appropriate. For both Core and Limited Scope benchmark administrators, the Conduct Rules of FCA will apply to almost all employees. This is in line with the extension to all other solo-regulated firms and should increase awareness of conduct issues across firms. However, FCA is proposing to tailor the Conduct Rules for certain commodity benchmark administrators.

    Senior Managers and Certification Regime (SM&CR) will apply to firms that carry out benchmark activities alongside other regulated activities from December 09, 2019. After the SM&CR is extended to FCA-regulated firms in December 2019, the existing Approved Persons Regime will no longer apply to firms authorized under Financial Services & Markets Act (FSMA). The only set of market participants the Approved Persons Regime will apply to is Appointed Representatives. The consultation proposes some consequential changes to the rules.

     

    Related Links

    Comment Due Date: February 28, 2020

    Effective Date: December 07, 2020

    Keywords: Europe, UK, Securities, Benchmark Administrator, Benchmarks Regulation, SM&CR, SMR, FSMA, CP 19/31, Operational Risk, FCA

    Related Articles
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936