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

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423