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2.1 Background and legal basis (paras. 1-8)

Closed
8 June 2020

1. Pursuant to Article 4(1) of the BMR, administrators shall ''have in place robust governance arrangements including clear organisational structure with well-defined, transparent and consistent roles and responsibilities for all persons involved in the provision of a benchmark''. This paragraph further states that administrators should identify and prevent or manage conflicts of interest between themselves (managers, employees or other persons directly or indirectly linked to them by control, contributors or users) and ensure that where any judgement or discretion in the benchmark determination process is required, it is independently and honestly exercised.

2. Article 5(2) of the ESAs' review states that ''ESMA shall develop draft regulatory technical standards to specify the requirements to ensure that the governance arrangements referred to in paragraph 1 [of Article 4 of the BMR] are sufficiently robust.''

3. Robust governance arrangements of the administrator are necessary to pre

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