On February 20, 2018, the Financial Services and Markets Act 2000 (Benchmarks) (Amendment) Regulations 2018 were published to correct a drafting issue in the Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018, which are due to implement parts of the EU Benchmarks Regulation with effect from February 27, 2018.
Under the U.K. Benchmarks Regulations, which were laid before Parliament on February 5, 2018, transitional provisions will apply until revoked on May 1, 2020. The transitional provisions include a provision that applies to existing benchmark administrators only in respect of benchmarks they were administering on or before June 30, 2016. The effect of the transitional provision is that these existing benchmark administrators will not need to obtain regulatory permission under the Financial Services and Markets Act.
The newly published Amendment Regulations amend the U.K. Benchmarks Regulations to ensure that the transitional provision applies to existing benchmark administrators in relation to benchmarks administered before, on and after June 30, 2016. These benchmarks administrators will also be able to rely on the transitional provision in respect of new benchmarks during the transitional period.
The Amendment Regulations take effect on February 26, 2018.
The Amendment Regulations (S.I. 2018/204) are available at: http://www.legislation.gov.uk/uksi/2018/204/pdfs/uksi_20180204_en.pdf, the explanatory memorandum is available at: http://www.legislation.gov.uk/uksi/2018/204/pdfs/uksiem_20180204_en.pdf and details of the U.K. Benchmark Regulations are available at: http://finreg.shearman.com/uk-benchmarks-legislation-published.
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