BELGIUM: FSMA Announces Application of the Benchmark Regulation

Friday December 29 2017

On 1st January 2018, FSMA announced the introduction of Regulation 2016/1011 (the Benchmark Regulation / the BMR).

For existing benchmark administrators (i.e. those already active on 30th  June 2016) this marks the start of a two-year period during which they can apply for authorisation or registration with their competent authority. For administrators located in Belgium, the competent authority is the FSMA. They may continue to provide existing benchmarks until 1st January 2020 or, where the administrator submits an application for authorisation or registration, unless and until such application is refused. ESMA has clarified that existing benchmark administrators can also start providing new benchmarks during this period.

ESMA has clarified that benchmark administrators need to comply with the requirements of the BMR from the moment of authorisation or registration onwards – not before.

As of 1st January 2018, benchmark users have to produce and maintain robust written plans to cover the event of material changes to or cessation of a benchmark they use. These plans need to be reflected in contracts with clients.

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