The Financial Conduct Authority (FCA) has published a consultation on how to apply the Senior Managers Regime (SMR) to benchmark administrators.
The SMR sets standards for governance and accountability, and will apply to almost all FCA-regulated firms from December 2019.
As benchmark administrators are a new category of authorised firms they have been granted a one year extension from the wider roll out of the SMR.
The new rules will come into force for these firms on 7 December 2020.
SMR is designed to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
The FCA is proposing that all benchmark administrators are automatically classified as ‘core’ firms under the regime.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Benchmark administrators play an important role in financial markets.
“As with all other firms offering regulated financial services, it is important that benchmark administrators have healthy cultures and high standards of personal conduct.
“Our proposals seek to ensure appropriate accountability for senior managers at these firms.”
The FCA welcomes feedback on the proposals and aims to finalise its approach by Q3 2020.