Benchmarks supervision

Approach to supervision

In line with our Approach to Supervision[1], we supervise Benchmark administrators as members of a portfolio of firms that share a common business model.

In December 2024, we issued our third portfolio letter[2] to all benchmark administrators in our portfolio, outlining the key risks identified and our areas of focus, as well as the actions we expect benchmark administrators to take to minimise risks to consumers, market integrity or competition from failures to meet regulatory requirements.

We also published a Dear CEO letter[3] to all benchmark administrators in our portfolio in March 2023, outlining where improvements are needed in ESG benchmarks.

Regulation

We supervise benchmark administrators according to the UK Benchmark Regulations and applicable FCA Principles and Rules including the Senior Managers Regime[4] and Conduct Rules[5]. 

Information for benchmark administrators

The Benchmarks Regulation (BMR) governs benchmark administrators, ensuring the accuracy and integrity of benchmarks.

Low carbon benchmarks and sustainability-related disclosures

The amendments to the EU Benchmarks Regulation (EU BMR) as part of the Sustainable Finance Action Plan (low carbon benchmarks and ESG disclosure) came into effect in November 2019. 

The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2020[6] made amendments to these provisions, so they would operate effectively in the UK following the end of the transition period.

The EU Commission adopted 3 delegated acts that sit beneath these changes to the EU BMR, which came into force on 23 December 2020 and form part of domestic law. The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 made amendments to these provisions so they would operate effectively in the UK.

Read the published texts of the delegated acts supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council in the FCA Handbook: 

• 2020/1816: explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published[7]
• 2020/1817: minimum content of the explanation on how environmental, social and governance factors are reflected in the benchmark methodology[8]
• 2020/1818: minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks[9]

New Consumer Duty

The FCA has published final guidance[10] to provide firms with the information they need to implement the new Consumer Duty. While the regulated activity of administering a benchmark is excluded from the Duty, we expect you to consider how you can support users of your benchmarks in meeting their obligations under the new consumer duty - for example, by making relevant information and disclosures available to them.  

Benchmark notifications

The BMR does not require an authorised administrator to notify us of new benchmarks or families. However, if you wish to do so, you may update the benchmark schedule you used during the authorisation/registration process and send it to us via email.

You must notify us if you wish to apply any exemptions in relation to your new benchmarks in accordance with Articles 25(1) and 26(1) of the BMR.

Articles 26(2) and 24(3) of the BMR require administrators to notify us in the event their benchmarks change categories, for example they move from significant to non-significant and vice versa.

Article 20(1A) of the BMR requires administrators to notify us if a benchmark they administer reaches the critical benchmark thresholds set out in Article 20(1). 

In addition, we would be grateful if you could inform us:

• if you intend to or begin to administer a significant benchmark
• if you intend to or begin to administer a benchmark with contributors
• if you intend to start administering cryptoasset benchmarks, before these are made available for use in the UK. 
• if you intend to administer credit sensitive rates, before these are made available for use in the UK.

For any notification in respect of exemptions, changes or updates to existing benchmark categorisations or types you should notify us at [email protected].

Contacting us

For regulatory enquiries specifically related to benchmarks, contact our Benchmarks Supervision team via email at [email protected].