On 8 December 2021, the European Securities and Markets Authority (ESMA) issued guidelines on methodology, oversight function and record keeping under the Benchmarks Regulation.
The guidelines on methodology, oversight function and record keeping are designed to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of the requirements related to material changes to the methodology, the use of an alternative methodology in exceptional circumstances and the oversight function. In particular, the guidelines set out a framework for administrators of critical and significant benchmarks when consulting on material changes to the methodology or using an alternative methodology in exceptional circumstances, together with an adequate oversight function.
The guidelines also amend the existing guidelines on non-significant benchmarks, in line with the new guidelines introduced for administrators of critical and significant benchmarks, with regard to the oversight function and the use of an alternative methodology in exceptional circumstances.
The guidelines apply from 31 May 2022.