Overview of the Act
- The Critical Benchmarks (References and Administrators’ Liability) Act 2021 (c. 33) supports the orderly wind-down of critical benchmarks, protecting both users of these benchmarks and the integrity of the UK’s financial markets.
- The Act supports the effective operation of the powers granted to the Financial Conduct Authority (FCA) under the Financial Services Act 2021 to oversee the wind-down of a critical benchmark. In particular, this Act provides legal certainty as to how contractual references to a critical benchmark should be treated where the FCA exercises powers under the Benchmarks Regulation (BMR) to provide for the continuity of an unrepresentative critical benchmark.
- The Act also grants an immunity to the administrator of a critical benchmark that is designated under Article 23A of the BMR where the administrator acts in accordance with specific requirements imposed upon it by the FCA.