Part 2: Benchmarks Section 15: Orderly cessation of Article 23A benchmarks
This section introduces a new provision, Article 23D of the BMR, which gives the FCA the powers to wind down a critical benchmark in an orderly fashion once it has been designated as an Article 23A benchmark. This section also introduces a new provision Annex 4 which gives the FCA the power to modify certain provisions of the BMR as they apply to the administrator of an Article 23A benchmark once it has been designated as such.
	Paragraph 2 of Article 23D sets out that the FCA may, by issuing a notice, require the administrator to change how a critical benchmark is determined, including in relation to input data and the rules of the benchmark. Paragraph 8 further clarifies that the administrator may not change anything described in paragraph 2 unless it is required or permitted to do so by the FCA.
	Paragraph 3 sets out the conditions under which the FCA may exercise its powers under paragraph 2. The FCA may only exercise its powers if the FCA considers it appropriate to do so, having regard to the desire to secure an orderly wind-down of a critical benchmark and if it advances one or both of the FCA’s statutory objectives of consumer protection and market integrity. Paragraph 4 allows the FCA to consider the likely effect of the FCA’s exercise of the power outside the UK.
	Paragraph 5 further specifies the scope of the FCA’s powers under paragraph 2. This includes a power to vary or withdraw a requirement on the administrator from time to time.
	Paragraph 6 makes clear that the FCA’s powers under paragraph 2 are not limited by the market or economic reality that was intended to be measured by the benchmark immediately before it became an Article 23A benchmark, but the FCA may have regard to that when exercising its powers.
	Paragraphs 7, 9 and 10 set out requirements for the content and publication of the notice under paragraph 2 and permits the FCA to charge a reasonable fee for providing a person with a copy of a notice. The notice must give reasons for the FCA’s decision to exercise its Article 23D(2) power and how the FCA will exercise its power.
	Paragraph 11 provides that the BMR applies to Article 23A benchmarks with modifications referred to in Annex 4.
	Annex 4, paragraph 2, specifies how Article 11(1) regarding input data and Article 27(1) regarding the content of the benchmark statement will be modified for the purposes of administrators of Article 23A benchmarks.
	Annex 4, paragraph 3, grants the FCA the power to apply the BMR to an Article 23A benchmark (with further, specific modifications) where it considers it appropriate to do so having regard to the effects of the designation under Article 23A, or the FCA’s exercise of its powers under Article 23D(2) (or both).
	Annex 4, paragraph 4, requires the FCA to inform the administrator by written notice of any modifications it proposes to apply. Paragraph 5 sets out requirement for the notice. It must allow the administrator to make representations to the FCA within the time period specified in paragraph 5.
	Annex 4, paragraph 6, requires the FCA to issue a written notice to the administrator regarding its final decision to apply any modifications, having engaged with the administrator, as provided under paragraph 5. Paragraphs 7-9 set out requirements as to the content and publication of the FCA notice as required under paragraph 6.
	Annex 4, paragraph 9(b) also permits the FCA to charge a reasonable fee for providing a person with a copy of a notice published under this Article.
	Annex 4, paragraph 10 clarifies that paragraphs 11 – 13 apply where the FCA gives the administrator of an Article 23A benchmark a notice under Article 23D(2) or (8)(b).
	Annex 4, paragraph 11, requires the FCA to consider whether to use its power under Annex 4, paragraph 3, within a specified time period after receiving a notice as described in paragraph 10. During the ‘interim period’ as defined by paragraph 13, the administrator is required under paragraph 12 to comply with the BMR to the extent that it remains reasonably practicable to do so.