Document ID: chunk:federal_register_of_legislation:F2022C00386:body:0:p4
Version: federal_register_of_legislation:F2022C00386
Segment Type: other
Provision Reference: 
Character Range: 8985–12238

appropriately updated after significant changes to the licensee's business of generating and administering financial benchmarks.

     2.1.5           Resources
A benchmark administrator licensee must at all times have sufficient human, technological and financial resources to ensure that the licensee is able, to the extent that it is reasonably practicable to do so, to generate and administer each financial benchmark specified in its benchmark administrator licence in a way that maintains the quality, integrity, availability, reliability and credibility of the financial benchmark.

     2.1.6           Human resources
Without limiting Rule 2.1.5, a benchmark administrator licensee must ensure each of its officers, managers, employees and representatives:
(a)        are fit for office, having regard to matters including the person's fame, character and integrity;
(b)       have the experience, qualifications and skills needed to perform their respective roles and responsibilities in the governance and management of the licensee and oversight and control of the functions involved in the generation and administration of the financial benchmarks specified in the licensee's benchmark administrator licence.

     2.1.7           Financial resources
Without limiting Rule 2.1.5, a benchmark administrator licensee must at all times hold or have legally certain access to net assets funded by equity (such as shares, disclosed reserves or other retained earnings) that, at a minimum, are equal to an amount that would enable the licensee to cover at least six months of current operating expenses for the generation and administration of the financial benchmarks specified in its benchmark administrator licence, calculated on a rolling basis at the end of each month.

     Part 2.2         Financial benchmark design, data and method

     2.2.1           Benchmark design
A benchmark administrator licensee must ensure that each financial benchmark specified in the licensee's benchmark administrator licence is designed, to the extent reasonably practicable, to be an accurate and reliable representation of the Interest.

     2.2.2           Financial benchmark data
(1) A benchmark administrator licensee must take all reasonable steps to ensure that the financial benchmark data that is used to generate each financial benchmark specified in the licensee's benchmark administrator licence is:
(a)        sufficient to accurately and reliably represent the Interest; and
(b)       based on an active market involving arm's length transactions between buyers and sellers that reflects the competitive forces of supply and demand, where that financial benchmark data is available and meets the requirement in paragraph (a).
(2) A benchmark administrator licensee must have adequate arrangements to control the acceptance, retention and use of the financial benchmark data used to generate or administer each financial benchmark specified in the licensee's benchmark administrator licence, including arrangements reasonably designed to ensure that:
(a)        the licensee accepts and retains financial benchmark data in a manner that maintains the security and integrity of that data; and
(b)       the financial benchmark data used by