TITLE IIIREQUIREMENTS FOR DIFFERENT TYPES OF BENCHMARKS

CHAPTER 4Critical benchmarks

Article 23C F1Exception 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)).