BENCH 1 Handbook requirements in relation to benchmark contribution activity and benchmark administration activity

This special guide is for firms which;

1. (1)

   carry out the regulated activity of administering a benchmark;

2. (2)

   contribute input data to a BMR benchmark administrator; or

3. (3)

   use a benchmark.

The purpose of this special guide is to:

1. (1)

   help regulated benchmark administrators by setting out which parts of the Handbook apply to them when they carry out the regulated activity of administering a benchmark;

2. (2)

   help benchmark contributors by setting out which parts of the Handbook apply to them when they contribute input data to a BMR benchmark administrator;

3. (3)

   remind all firms of their obligations under the benchmarks regulation when using a benchmark.

1. (1)

   The EU benchmarks regulation applied from 1 January 2018. The benchmarks regulation is the United Kingdom version of this EU regulation and applies from IP completion day.

2. (2)

   Various changes were made to the Regulated Activity Order as a result of the EU benchmarks regulation. In particular:

   1. (a)

      A new regulated activity of: administering a benchmark (article 63S of the Regulated Activities Order) was introduced.

   2. (b)

      The regulated activity of administering a specified benchmark ceased to apply (subject to the transitional provisions described in SUP TP 10).

   3. (c)

      The regulated activity of providing information in relation to a specified benchmark ceased to apply (subject to the transitional provisions described in SUP TP 10). However, benchmark contributors which contribute input data to a BMR benchmark administrator are still subject to various requirements in the Handbook and are subject to the benchmarks regulation when doing so.

3. (3)

   SUP TP 10 contains guidance on the transitional arrangements governing the changes to the regulated activities above.

4. (4)

   The following transitional provisions are also relevant to a firm which, immediately before 1 January 2018, was authorised to administer a specified benchmark or to provide information in relation to a specified benchmark:

   1. (a)

      SYSC TP 6 and SYSC TP 7;

   2. (b)

      FEES TP 17AR;

   3. (c)

      MAR TP 1; and

   4. (d)

      SUP TP 10.