On 17 December 2025, HM Treasury published plans to reform the UK’s benchmark regime on the basis that it is no longer proportionate to the risks it sought to address. The proposals would reduce the scope of regulation by 80-90% to include only a small number of benchmarks and administrators. The FCA has confirmed that it is working with Government on this and will consult on the regulatory requirements in due course.

It is not yet clear when the new Specified Authorised Benchmark Regime might be introduced. HM Treasury requests responses to its consultation paper by 11 March 2026. It also flags that the proposal may change as a result of those and further stakeholder engagement.

Below is a brief summary of how the current proposals would apply:

HM Treasury: It will designate benchmarks and/or administrators.

Benchmarks would be designated if they have no or few substitutes or it is not reasonably practicable for one or more users to switch to one of the substitutes and, if they were to cease to be provided, there would be an impact on:

• the integrity of the UK financial system and consumers; or
• the market the benchmark seeks to measure.

Administrators could be designated even if none of their benchmarks have a significant impact individually but taken together they would have a significant and adverse impact on the integrity of the UK financial system and consumers if they were to cease without sufficient notice, were provided on the basis of data that was not fully representative or was unreliable or they were not administered correctly.

FCA: The FCA would advise HM Treasury on the application of the designation criteria, set the requirements that designated administrators must comply with (which might differ according to the benchmark), and exercise supervisory and enforcement powers.

UK administrators: Only administrators and benchmarks designated by HM Treasury would be regulated. There would be no distinction between critical, significant or other benchmarks, or (in the legislation) between interest rate, regulated data and commodity benchmarks, although the FCA may calibrate the requirements applicable to these different types. The government will consider how to ensure a smooth transition from regulation under the current regime to the new one.

Other administrators will not be regulated and there will be no ability to opt into the regime. It is not yet clear how the process of ceasing to be authorised will work.

Overseas administrators: Overseas benchmarks and administrators could be designated. The government proposes to create an Overseas Recognition Regime to replace the equivalence route in the Benchmarks Regulation so that, where a designated benchmark or administrator is regulated in a jurisdiction with ORR determination, it would not need to be regulated by the FCA as well.  

Where a designated benchmark is administered in a jurisdiction that does not have an ORR determination, the government is considering the options. It could maintain the recognition or endorsement regime under the existing Benchmark Regulation or require them to become regulated as a UK branch or subsidiary with responsibility for the oversight function.

Article 2 exempt benchmarks: These would remain out of scope.

Contributors: The proposal is to retain obligations for authorised contributors. The government is considering whether to extend the definition of input data to non-price data given the increasing use of ESG metrics and qualitative indicators in benchmark methodologies.

Users: Users will no longer be required to use benchmarks on the FCA register. Authorised firms will still have to undertake due diligence on whether a benchmark is appropriate for their business and there should be no regulatory advantage to using a regulated benchmark over an unregulated one. The FCA would be able to make rules on how to manage risk associated with both types of benchmarks and the FCA will consult separately on this.

We would be pleased to discuss the new regime and the impact it may have for you in the new year.

In the meantime, we wish you a restful break.