Following completion of the merger of UBS AG and Credit Suisse AG, Credit Suisse AG’s business was transferred to UBS AG, and Credit Suisse AG ceased to exist. At this time however, the two entities did not operationally merge and, as a result, we continue to have two sets of operational infrastructure and processes during this transitionary period.

Consequently UBS AG is now the sole parent entity and all direct subsidiaries of Credit Suisse AG have become direct subsidiaries of UBS AG, and all branches of Credit Suisse AG have been absorbed into existing or established as new branches of UBS AG (as the case may be). As such, Credit Suisse AG’s branches have been renamed as UBS Branches, with the exceptions of Credit Suisse AG, Taipei Securities Branch and Credit Suisse AG Shanghai Branch.

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Credit Suisse Securities (Europe) Limited (CSSEL)

Credit Suisse International (CSI)

Transfer of CSSEL's administrator and sponsor roles

This Notice relates to Credit Suisse's business of the administration of indices that constitute "benchmarks" for the purposes of the Benchmark Regulation.
Following an internal review, Credit Suisse has decided to reorganise its index administration activities so they are conducted out of CSI with effect on or about 31 January 2019. This is in preparation for CSI applying to the Financial Conduct Authority (the "FCA") in the United Kingdom ("UK"), for registration as an administrator under the BMR. The reorganisation will involve the following taking place:

  • CSSEL will transfer (the "Transfer") its role as administrator and/or sponsor in respect of each existing index (each, a "Relevant Index" and, together, "Relevant Indices") for which it is the sole administrator or the sole sponsor, to CSI;
  • CSI will assume the administration and sponsor role of each Relevant Index; and
  • the existing rulebook for the Relevant Indices will be amended to reflect the Transfer.

Co-Sponsored Indices

The Transfer does not cover any indices ("Co-sponsored Indices") for which CSSEL is a co-sponsor or a co-administrator together with one or more other entities. Credit Suisse will separately determine the approach to be taken with relevant stakeholders.

Registration with FCA

After completion of the Transfer, CSI intends to apply to the FCA for registration as an administrator under the BMR so that this registration is formally granted prior to 1 January 2020, which is the end of the BMR Transition Period mentioned below.

Further background to BMR

Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the "BMR" or “Benchmark Regulation”) creates a regime for benchmark administrators that is intended to ensure the accuracy and integrity of benchmarks. The scope of the BMR includes the provision of benchmarks by administrators, the contribution of input data to a benchmark by contributors and the use of benchmarks by supervised entities within the European Union ("EU").

The principal provisions of the BMR applied from 1 January 2018. EU benchmark administrators already providing a benchmark on 30 June 2016 (which includes CSSEL and CSI) have until 1 January 2020 to submit their applications for registration, during which time and until any final rejection of the application (the "BMR Transition Period"), EU supervised entities may continue to use existing benchmarks as well as new benchmarks offered by such administrators in accordance with the BMR's transitional provisions.

Withdrawal of the UK from the EU

In the absence of any bespoke arrangements between the UK and the EU following the UK's withdrawal from the EU, CSI would become a third country benchmark administrator for the purposes of the BMR. The use of CSI's benchmarks by supervised entities in the EU following the UK's withdrawal would still be subject to certain requirements under BMR, including transitional provisions. Supervised entities in the EU are permitted to use such benchmarks where the relevant product references such benchmark and is issued prior to 1 January 2020.
The impact of the UK's exit from the EU on the administration of Credit Suisse's indices is under consideration by Credit Suisse and there are a number of alternatives available under BMR which are being reviewed (including endorsement by an EU-regulated CSI affiliate of all of CSI's benchmarks), to enable CSi's benchmarks to continue to be used by supervised entities in the EU in new products beyond 1 January 2020.

Contact Details

Please contact your usual coverage contact should you have any questions on this Notice.

Disclaimer

  1. Neither this document nor any information contained herein constitutes (i) legal or investment advice, (ii) any recommendation to use any index or benchmark that may be administered by Credit Suisse or (iii) any representation or warranty with respect to any index or benchmark that may be administered by Credit Suisse.
  2. ESMA, the European Commission and/or the UK authorities may issue guidance and additional rules from time to time that differ from the rules and guidance available at the time this document was issued. In addition, Credit Suisse may change policies, procedures and methodologies from time to time at its discretion. Investors in products referencing Credit Suisse indices and/or benchmarks and supervised entities should consult with their own legal and financial advisors before using any index or benchmark or making any investment or other decisions, including those which are regulatory.

Credit Suisse Securities (Europe) Limited

Credit Suisse International