As March 29 comes closer, the date on which the UK is due to leave the European Union, the UK Government is stepping up planning for all potential outcomes – including for a ‘no-deal’ scenario.
As part of this contingency planning, the Government has made preparations around the UK’s retained version of the EU Benchmarks Regulation (BMR) in the event that the UK leaves the EU on March 29 without agreement on an implementation period. It’s draft Statutory Instrument will amend the retained law to ensure that it continues to operate effectively in the UK following Brexit in any scenario.
The draft Statutory Instrument makes no policy changes to BMR and is intended only to ensure the stipulations of the Regulation continue to apply in the UK if an implementation period is not secured.
In effect, the Statutory Instrument would ‘onshore’ BMR, creating a new UK Benchmarks Regulation that replicates the provisions of the EU’s Regulation. If the Instrument comes into play, the FCA would maintain a register of approved benchmarks under the new UK Benchmarks Regulation, mirroring the register maintained by ESMA in the EU.
Exactly what will happen over the next few months is unclear and benchmark administrators, contributors and users in the UK and the EU 27 will need to keep a close eye on developments to understand their obligations and liabilities. One thing seems clear, however: the UK will operate a regulatory regime for benchmarks that will be very closely aligned to BMR in the event of withdrawal from the EU.
RIMES is following the evolution of Brexit closely as it applies to our market and our customers and will keep clients informed of any relevant developments.
Contact us to receive more information about RegFocussm BMR, the most advanced benchmarks validation solution on the market, which solves all regulatory obligations under the Benchmarks Regulation.
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