TITLE IIBENCHMARK INTEGRITY AND RELIABILITY

CHAPTER 3Code of conduct and requirements for contributors

Article 15Code of conduct

1

Where a benchmark is based on input data from contributors, its administrator shall develop a code of conduct for each benchmark clearly specifying contributors' responsibilities with respect to the contribution of input data and shall ensure that such code of conduct complies with this Regulation. The administrator shall be satisfied that contributors adhere to the code of conduct on a continuous basis and at least annually and in case of changes to it.

2

The code of conduct shall include at least the following elements:

a

a clear description of the input data to be provided and the requirements necessary to ensure that input data is provided in accordance with Articles 11 and 14;

b

identification of the persons that may contribute input data to the administrator and procedures to verify the identity of a contributor and any submitters, as well as authorisation of any submitters that contribute input data on behalf of a contributor;

c

policies to ensure that a contributor provides all relevant input data;

d

the systems and controls that a contributor is required to establish, including:

  1. (i)

    procedures for contributing input data, including requirements for the contributor to specify whether input data is transaction data and whether input data conforms to the administrator's requirements;

  2. (ii)

    policies on the use of discretion in contributing input data;

  3. (iii)

    any requirement for the validation of input data before it is provided to the administrator;

  4. (iv)

    record-keeping policies;

  5. (v)

    reporting requirements concerning suspicious input data;

  6. (vi)

    requirements concerning the management of conflicts of interest.

3

Administrators may develop a single code of conduct for each family of benchmarks they provide.

4

In the event that F1the FCA, in the use of its powers referred to in Article 41, finds that there are elements of a code of conduct which do not comply with this Regulation, it shall notify the administrator concerned. The administrator shall adjust the code of conduct to ensure that it complies with this Regulation within 30 days of such a notification.

5

Within 15 working days from the date of F5the Treasury making regulations under Articles A20(5) or (6), or 20(5) specifying a benchmark as critical, the administrator of that critical benchmark shall notify the code of conduct to the F2FCA. The F2FCA shall verify within 30 days whether the content of the code of conduct complies with this Regulation. In the event that the F2FCA finds elements which do not comply with this Regulation, paragraph 4 of this Article shall apply.

6

F3The FCA may make technical standards to specify further the elements of the code of conduct referred to in paragraph 2 for different types of benchmarks, and in order to take account of developments in benchmarks and financial markets.

F4The FCA shall take into account the different characteristics of benchmarks and contributors, in particular in terms of differences in input data and methodologies, the risks of input data of being manipulated and international convergence of supervisory practices in relation to benchmarks.

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