PART 2Amendment of EU Regulations
CHAPTER 1Amendment of Regulation (EU) 2016/1011
Critical benchmarks: review of critical benchmarksI115
Before Article 20 (critical benchmarks) insert—
Article A20Critical benchmarks: review of critical benchmarks
1
2
The review must consider:
a
whether an administrator located in the United Kingdom provides a benchmark that either:
i
satisfies one or more of conditions (a), (b) or (c) of paragraph 1 of Article 20; or
ii
satisfies only F4points (c)(ii) and (iii) of paragraph 1 of Article 20; and
b
where a benchmark satisfies point (a)(i) or (ii) of this paragraph, whether the FCA recommends that the benchmark is recognised as critical.
3
The FCA must provide a written report to the Treasury:
a
setting out the result of the review; and
b
making a recommendation as to whether any benchmark that satisfies point (a)(i) or (ii) of paragraph 2 should be recognised as critical.
4
The FCA must conduct the review and provide the report to the Treasury:
a
within the period of two years beginning with F1IP completion day; and
b
thereafter, at intervals of at least every two years, with each interval beginning with the date on which the last report was provided.
5
The Treasury must by regulations specify that a benchmark is critical if:
a
the FCA has recommended that the benchmark is recognised as critical in accordance with the review procedure specified in paragraphs 2 and 3; and
b
the Treasury determines that the FCA's review complies with the requirements of paragraphs 2 and 3.
6
The Treasury may by regulations specify that a benchmark is critical if:
a
the benchmark is provided by an administrator located in the United Kingdom; and
b
the Treasury considers that the benchmark either:
i
satisfies one or more of conditions (a), (b), or (c) in paragraph 1 of Article 20; or
ii
satisfies only the criteria in point (c)(ii) and (iii) in paragraph 1 of Article 20.
7
The Treasury may not specify a regulated-data benchmark as a critical benchmark under paragraph 5 or 6 of this Article or under paragraph 5 of Article 20.