Benchmarks

Use of Article 23A benchmarks
14
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)).