FCA's Supervision Strategy For Benchmark Administrators

On September 8, the UK's Financial Conduct Authority ("FCA") published a "Dear CEO" letter setting out its strategy and supervisory priorities for overseeing benchmark administrators under the UK Benchmark Regulations ("UK BMR") and applicable FCA Principles and Rules. This form of letter is a common tool utilized by the FCA to focus the attention of firms' senior managers on particular issues.

Following the UK's withdrawal from the EU and the end of the transition period, the EU Benchmark Regulation has been brought into UK law. Under the UK BMR, the FCA is responsible for: (i) the authorization and registration of UK benchmark administrators; (ii) the recognition of third country administrators; (iii) the endorsement of third country benchmarks; (iv) enforcement; and (v) the supervision of benchmark administrators, users and contributors in the UK.