Regulatory Alerts2021-12-07
Added · Updated
Guidelines on methodology oversight function and record keeping requirements
These guidelines apply to competent authorities and benchmark administrators from 31 May 2022, requiring administrators of critical and significant benchmarks to specify details for alternative methodologies used in exceptional circumstances, including overarching principles, calculation methods, scope, rationale, duration, and potential value impact. Administrators must ensure consultation periods for material methodology changes are adequate based on complexity and urgency, and must ensure oversight function members possess appropriate skills and expertise, with an exemption for natural persons. Record-keeping obligations for deviations from standard methodology are extended to non-significant benchmark administrators, requiring documentation of the deviation period, rationale, and approval process. The document also amends the Guidelines on non-significant benchmarks to align their requirements for exceptional circumstances and oversight functions with those established for critical and significant benchmarks.
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