Part 2: Benchmarks Section 13: Designation of certain critical benchmarks
This section gives the FCA the power to designate a critical benchmark under new Article 23A of the BMR, where the FCA has given notice to an administrator under Article 21(3B)(a) or Article 22B(3)(a) that the benchmark is unrepresentative, or its representativeness is at risk. The FCA may not designate a benchmark as an Article 23A benchmark if the conditions specified in paragraph 2 of Article 23A are met.
	Paragraph 3 of new Article 23A requires the FCA’s notice of its intention to designate a benchmark under this Article to set out the reasons for its decision, and to give the administrator the option to make representations. The administrator may make representations to the FCA within a time period specified in this paragraph.
	Paragraph 4 requires the FCA to give written notice to an administrator once it decides to designate a benchmark under Article 23A. Paragraph 5 sets out what the notice must contain. These include the reasons for the designation and when the designation takes effect.
	Paragraph 6-7 allow the FCA to change the date that the designation takes effect to a later date, provided that the designation has not come into force, and what information the FCA must provide by way of notice if it decides to change the date of the designation.
	Paragraph 8 allows the FCA to withdraw the designation notice issued under paragraph 5 if the designation has not come into effect and the FCA wishes to issue another designation notice. Paragraph 9 sets out what the FCA’s notice of withdrawal of designation must include.
	Paragraph 10 provides that the FCA may take into account different processes, including that of the Upper Tribunal, when determining the effective date of the designation. It also requires the FCA to publish its designation notice before it comes into effect. Paragraph 11 requires the FCA to provide a copy of its notice to HM Treasury, and permits the FCA to charge a reasonable fee for providing a person with a copy of a notice published under this Article.
	Paragraph 12 allows the administrator to refer the FCA’s designation decision under paragraph 4 to the Upper Tribunal. Paragraph 14 clarifies what the reference to an ‘Article 23A benchmark’ means in the BMR.