Government consults on benchmarks reform

HM Treasury is consulting on what the regulatory regime for benchmarks and benchmark administrators should look like in the future.

It plans to replace the current Benchmarks Regulation, which stems from a 2018 EU initiative, with a new “Specified Authorised Benchmarks Regime”. It says this will provide a more agile and proportionate framework by requiring only benchmarks and administrators that are designated because of their importance to be regulated.

The consultation seeks views on the proposed criteria for designation, which are based on:

• impact on the integrity of the UK financial system and consumers;
• impact on the market that the benchmark seeks to measure; and
• for administrators, those who produce large numbers of benchmarks, the aggregate use of all of which could pose a systemic risk.

This will allow greater use of benchmarks, and Treasury is keen to stress that unregulated benchmarks should not be regarded as of lower quality. Authorised firms will not be required only to use benchmarks that are on the FCA register.

Treasury thinks the proposals may result in an 80-90% drop in the number of administrators caught within the scope of regulation. So the UK may drop from regulating millions of benchmarks and 45 administrators to a regime that regulated only a small number of each.

The FCA welcomed the consultation and will consult on necessary rules in due course.

Consultation closes on 11 March 2026.