On 17 December 2025, HM Treasury (HMT) issued a consultation paper on the future regulatory regime for benchmarks and benchmark administrators.

In the consultation paper HMT is consulting on the proposal to introduce an entirely new benchmarks regime, which only regulates those benchmarks or benchmark administrators that may pose systemic risks to UK financial markets.

SABR

Under the new Specified Authorised Benchmark Regime (SABR), benchmarks or benchmark administrators will be designated as systemic by HMT based on advice from the Financial Conduct Authority (FCA). Once designation takes effect, benchmarks or benchmark administrators would be considered in scope of the regime and the relevant obligations would apply. All other benchmarks and administrators providing benchmarks in the UK would not be regulated. Under the proposed regime, there will no longer be the obligation for authorised firms, such as banks or asset managers, to only use benchmarks on an FCA register.

The designation criteria would be based on whether there would be an impact on the integrity of the UK financial system and consumers, or an impact on the market the benchmark seeks to measure. The

designation criteria for benchmark administrators would consider the aggregate impact of benchmarks administered by the firm on the integrity of the UK financial system and consumers.

Overseas benchmarks

The consultation also seeks views on whether the endorsement and recognition regimes for overseas benchmarks are still necessary, where only designated overseas administrators and benchmarks would need to comply with an overseas regime to provide their benchmarks in the UK.

Impact

Under the proposal, HMT believes that the number of benchmark administrators caught within the scope of regulation may reduce by up to 80 to 90 per cent. This would move the UK from a regime that regulates millions of benchmarks and approximately 45 domestic administrators to a regime that regulates only a small number of benchmarks and administrators.

Next steps

The deadline for comments on the consultation paper is 11 March 2026.

On 18 December 2025, the FCA confirmed that it welcomes HMT’s consultation on a new benchmarks regime and that it is working with HMT to reform the current benchmarks regime.

The FCA further confirmed that it will consult on revised regulatory requirements in due course and intends to engage widely to inform its approach.