The European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA), which regulates the financial services sector in the United Kingdom, signed a new Memorandum of Understanding (MoU) on Wednesday 25 January on cooperation and exchange of information regarding UK-based benchmark administrators.
Benchmarks are reference indices used in the context of financial instruments and contracts, for example to measure the performance of investment funds.
This Memorandum of Understanding concerns administrators who seek recognition or recognition in the EU.
Under the Benchmarks Regulation, where a non-EU administrator applies for recognition in the EU and is subject to supervision in its home jurisdiction, ESMA must first establish a memorandum of understanding with the non-EU competent authority. This protocol is a precondition for ESMA to grant recognition to this non-European administrator.
Furthermore, ESMA has expressed its wish to lift the restrictions on the use of third country benchmarks (see EUROPE 13006/6).
To consult the protocol: https://aeur.eu/f/536 (Original version in French by Anne Damiani)