Financial Services Act 2021

14 Use of Article 23A benchmarks

In the Benchmarks Regulation, after Article 23A (inserted by section 13) insert—

“Article 23B Prohibition on use of Article 23A benchmark

1. Supervised entities must not use an Article 23A benchmark, except where permitted to do so under paragraph 2 or Article 23C.

2. The FCA may, by publishing a notice before the day on which the designation of the benchmark under Article 23A takes effect, provide that the prohibition in paragraph 1 does not take effect until a date specified in the notice.

3. The date specified in a notice under paragraph 2 must fall before the end of the period of four months beginning with the day on which the designation of the benchmark under Article 23A takes effect.

4. A notice published under this Article must be published in the way appearing to the FCA to be best calculated to bring it to the attention of—

(a) supervised entities, and

(b) the public.

5. The FCA may charge a reasonable fee for providing a person with a copy of a notice published under this Article.

Article 23C Exception from the prohibition for legacy use of Article 23A benchmark

1. This Article applies to an Article 23A benchmark.

2. The FCA may, by publishing a notice, permit some or all legacy use of the benchmark by supervised entities.

3. The FCA may, by publishing a notice, alter or withdraw a permission under paragraph 2.

4. The FCA may only exercise a power under paragraph 2 or 3 if it considers it desirable to do so in order to advance either or both of the following—

(a) its consumer protection objective (see section 1C of FSMA);

(b) its integrity objective (see section 1D of that Act).

5. In exercising a power under paragraph 2 or 3 in relation to a benchmark that is used outside the United Kingdom, the FCA may, among other things, have regard to the likely effect outside the United Kingdom of the exercise of the power.

6. A notice under this Article may—

(a) make provision by reference to any aspect of the legacy use of the benchmark, including the persons involved in the use;

(b) provide that the permission has effect only during a period specified in the notice;

(c) make different provision for different purposes;

(d) make such transitional provision as the FCA considers appropriate.

7. A notice under this Article must—

(a) give reasons for the permission, or the alteration or withdrawal of permission,

(b) specify when the permission, or the alteration or withdrawal, is to take effect,

(c) explain how the FCA has taken account of the relevant policy statement (see Article 23F), and

(d) provide any further information that the FCA considers appropriate for assisting supervised entities to understand the permission or the alteration or withdrawal of permission.

8. A notice under this Article must be published in the manner that appears to the FCA to be best calculated to bring it to the attention of—

(a) supervised entities, and

(b) the public.

9. The FCA—

(a) must give a copy of a notice under this Article to the Treasury before publishing it, and

(b) may charge a reasonable fee for providing a person with a copy of a notice published under this Article.

10. In this Article—

(a) references to legacy use of a benchmark are to use that is not new use, and

(b) “new use” has the same meaning, in connection with the prohibition under Article 23B, as it has in connection with a prohibition under Article 21A (see Article 21A(2) and (9)).”