MoU between ESMA and the FCA concerning the recognition of UK benchmark administrators

The European Securities and Markets Authority, ESMA, has published a Memorandum of Understanding (MoU) concluded between itself and the UK Financial Conduct Authority (FCA) as regards the supervision benchmark administrators. Therein, the regulators agree to closely cooperate on such supervision and exchange information – within legal limits – on benchmark administrators that are applying or have already applied for third-country recognition in the European Union or that have already been recognized as such. They also agree on a regular exchange of information pertaining to regulatory developments and supervisory efforts in the respective jurisdictions. The purpose of the MoU, so ESMA, is to facilitate an effective supervision of compliance with EU rules and regulations of UK benchmark administrators and also to ensure that the regulations of the UK Financial Conduct Authority (FCA) are and remain consistent with those in the EU as regards the supervision of benchmark administrators. The agreement was published on January 25, 2023.