The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018

Procedure for prior recognition of a benchmark administrator located in a third country

34.—(1) An application for prior recognition of a benchmark administrator located in a third country under Article 32 of the EU Benchmarks Regulation 2016 must be made in such manner as the FCA may direct.

(2) The FCA must either—

(a) determine the application within 90 working days of receipt of the completed application; or

(b) notify ESMA, without undue delay, where the FCA considers that Article 32(6) applies.

(3) The FCA must make a recognition order granting the administrator prior recognition if the conditions in Article 32 of the EU Benchmarks Regulation 2016 are met.

(4) The FCA must—

(a) notify the administrator in writing of its decision; and

(b) state whether the decision is to take effect immediately or on such date as may be specified in the notice.

(5) Where the conditions in Article 32 of the EU Benchmarks Regulation 2016 are not met and the FCA refuses to grant a recognition order it must give the administrator a written notice to that effect.

(6) The FCA may—

(a) on its own initiative; or

(b) on an application by the administrator;

withdraw, suspend or vary a recognition order.

(7) Where the FCA exercises its power under paragraph (6)(a) or refuses the administrator’s application under paragraph (6)(b), to withdraw, suspend or vary a recognition order, it must give the administrator a written notice.

(8) The written notice under paragraph (5) or (7) must—

(a) give details of the decision;

(b) state the FCA’s reasons for the decision;

(c) inform the administrator of its right either to—

(i) request a review of the decision and make written representations for the purposes of the review within such period as may be specified in the notice; or

(ii) refer the matter to the Tribunal within such period as may be specified in the notice, and indicate the procedure on such a reference; and

(d) inform the administrator when the withdrawal, suspension or variation of the recognition order is to take effect.

(9) If the administrator requests a review of the decision made by the FCA, the FCA must review its decision, taking into account any written representations.

(10) On a review under paragraph (9) the FCA may—

(a) affirm its original decision in respect of the recognition order; or

(b) make any other decision the FCA could have made on the application in respect of the recognition order;

by giving the administrator a written notice of its decision.

(11) A written notice under paragraph (10) must—

(a) give details of the decision made by the FCA;

(b) state the FCA’s reasons for the decision;

(c) state whether the decision is to take effect immediately or on such date as may be specified in the notice; and

(d) inform the administrator of its right to refer the matter to the Tribunal within such period as may be specified in the notice, and indicate the procedure on such a reference.