The European Council adopted an amended EU financial benchmarks regulation that narrows the regime to critical and significant benchmarks and adjusts related oversight and third-country provisions, with the stated aim of reducing administrative burden for EU companies, particularly small and medium-sized enterprises. The changes remove administrators of benchmarks classified as non-significant in the EU from the scope of the rules, while allowing out-of-scope administrators to request voluntary application of the regime under certain conditions. The amended framework also extends the competence of the European Securities and Markets Authority (ESMA), requires administrators of EU Climate Transition Benchmarks and EU Paris-Aligned Benchmarks to be registered, authorised, recognised, or endorsed to support supervisory oversight and limit misleading ESG claims, and introduces a specific exemption regime for spot foreign exchange benchmarks. The regulation now goes to the European Parliament for adoption at second reading before publication in the Official Journal and entry into force. Its application date is set for 1 January 2026.
European Council 2025-03-24
European Council adopts revised EU benchmarks regulation narrowing scope to critical and significant benchmarks with application from 1 January 2026
The European Council amended the EU financial benchmarks regulation to ease administrative burdens for EU companies. Changes exclude non-significant benchmark administrators, extend ESMA's oversight, and require registration for EU Climate Transition and Paris-Aligned Benchmarks. The regulation awaits European Parliament adoption before 2026 implementation.