Implementing Decision on equivalence of New Zealand benchmark framework published in OJ

Commission Implementing Decision (EU) 2025/2197 has been published in the Official Journal of the European Union (OJ), confirming the equivalence of New Zealand's legal and supervisory framework for financial benchmarks in accordance with Regulation (EU) 2016/1011 (the Benchmarks Regulation). Since 2018, non-EU benchmark administrators have benefited from a transitional period allowing continued use of third-country benchmarks within the EU, which was most recently extended in October 2023 by Commission Implementing Decision (EU) 2023/2222 until 31 December. The new equivalence Decision will mean that benchmarks administered by licensed entities in New Zealand, such as the New Zealand Bill Benchmark Rate, can continue to be used within the EU following the expiry of the transitional period on 31 December.

In New Zealand, benchmark administrators may apply for a market services licence from the Financial Markets Authority (FMA) under the Financial Markets Conduct Act 2013 (FMC Act). The European Commission (EC) has concluded that the binding requirements with respect to administrators that have opted into the licensing scheme under the FMC Act are subject to effective supervision and enforcement on an ongoing basis. The EC has assessed the rules and supervisory procedures applicable to licensed benchmark administrators in New Zealand under the FMC Act and concludes that the regime is equivalent to the EU regime. In addition, EU benchmark administrators do not need to obtain a licence for their benchmarks to be used in New Zealand but can voluntarily seek to be licensed in New Zealand. The Decision highlights that it should be complemented by co-operation arrangements between ESMA and the FMA to support supervisory co-ordination. The Decision entered into force on 3 November.

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