EC Publishes Standards on Templates for Compliance Statement Under BMR
EC published the Commission Implementing Regulation (EU) 2018/1106 that lays down implementing technical standards on templates for the compliance statement to be published and maintained by administrators of significant and non-significant benchmarks, pursuant to the Benchmarks Regulation or BMR (EU Regulation 2016/1011). Regulation (EU) 2018/1106 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and it shall apply from October 29, 2018.
Article 25(7) of Regulation (EU) 2016/1011 obliges administrators of significant benchmarks that choose not to comply with one or more particular requirements of the Regulation to publish and maintain a compliance statement stating why it is not appropriate for them to comply with those requirements. Article 26(3) of the Regulation imposes a similar obligation on administrators of non-significant benchmarks, but in respect of a broader range of requirements. Articles 25(7) and 26(3) of BMR require the compliance statement to clearly state why the administrator considers it appropriate not to comply with the provisions in question. The template should, therefore, require a separate explanation for each of the provisions not applied by the administrator.
Administrators may choose to use a single compliance statement for a family of benchmarks, provided that it allows for a clear identification of the provisions that the administrator chose not to apply for each benchmark covered by the compliance statement. A single compliance statement should not cover significant and non-significant benchmarks. If a family of benchmarks comprises significant and non-significant benchmarks, at least two compliance statements should be prepared. The template for the compliance statement referred to in Article 25(7) of BMR has been set out in Annex I to Regulation (EU) 2018/1106. The template for the compliance statement referred to in Article 26(3) of BMR has been set out in Annex II to Regulation (EU) 2018/1106.
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Effective Date: August 29, 2018
Keywords: Europe, EU, Securities, Benchmarks Regulation, Compliance Statement, Templates, Regulation 2018/1106, EC
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