UK Financial Conduct Authority Consults On Benchmarks Enforcement Powers

On February 5, 2018, the FCA published a consultation setting out proposed changes to its Decision Procedure and Penalties manual and its Enforcement Guide. The amendments to DEPP and EG reflect changes introduced by the EU Benchmarks Regulation, which took effect on January 1, 2018. The Benchmarks Regulation has been implemented in the U.K. by the Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018, which will make the necessary changes to the U.K. statutory framework when they come into force mainly on February 27, 2018.

The FCA proposes to make changes in DEPP to its decision-making procedures for determining applications for: (i) authorization and registration of EU-based benchmark administrators; and (ii) recognition orders or endorsement orders in relation to third country benchmarks. It will also make changes in DEPP to its decision- making procedures for withdrawing, suspending or varying recognition and endorsement orders. Proposed changes