Council adopts financial benchmarks regulation to ease burden on SMEs

The Council adopted today a regulation on financial benchmarks with the aim of reducing red tape for EU companies, particularly SMEs.
Benchmarks are widely used by companies and investors in the EU as references in their financial instruments or contracts.
This legislation amends a regulation from 2016 regarding the scope of the rules for benchmarks, the use of benchmarks provided by administrators located in third countries, and certain reporting requirements.

Main elements of the amended benchmarks regulation

• Reduced regulatory burden on administrators of benchmarks defined as non-significant in the EU by removing them from the scope of the legislation.
• Only critical or significant benchmarks remain within the scope of the new regulation.
• Administrators outside the scope of the rules will be able to request the voluntary application of the rules (opt-in), under certain conditions.
• Extended competence for the European Securities and Markets Authority (ESMA).
• Administrators of EU Climate Transition Benchmarks and EU Paris-Aligned Benchmarks must be registered, authorized, recognised, or endorsed to ensure regulatory oversight and prevent misleading ESG claims.
• A specific exemption regime for spot foreign exchange benchmarks.

Next steps

The final text will be published in the Official Journal of the EU, will enter into force, and apply from 1 January 2026.

Background

The Commission presented this proposal in 2023 as part of a package of measures to rationalise financial reporting requirements.
In its Communication ‘Long-term competitiveness of the EU: looking beyond 2030’, the Commission stressed the importance of a regulatory system that ensures objectives are met at minimum cost. It has therefore committed to a renewed effort to simplify and rationalise reporting requirements, with the ultimate aim of reducing administrative burdens by 25%, without undermining the related policy objectives.

Please leave this field empty

Oh hi there Sign up for our newsletter and get the latest 15 news stories delivered to your inbox every week.

Be the first to know, and let us know the topics you care about!.

We don’t spam! Read our privacy policy(*) for more info.

Thank you! Now please check your inbox or spam folder to confirm your subscription.