TR15/11: Financial Benchmarks: Thematic Review of Oversight and Controls

This report presents the findings from our thematic review of firms’ oversight and controls in relation to financial benchmarks.

Thematic review 15/11 [PDF]

Why did we carry out this thematic review?

Robust financial benchmarks play a significant role in the global economy and impact a multitude of financial instruments and contracts used by companies, governments and consumers.

We carried out this thematic review between August 2014 and June 2015 to get an early assessment of the extent to which firms had learnt the lessons from previous failures around benchmark activities and taken appropriate action in response.  

Who should read this?

This report will be of interest to all users of benchmarks and especially those firms that engage in activities related to benchmarks, namely firms that are benchmark submitters, administrators or data providers. It will also be of interest to those who trade in underlying instruments that could affect a benchmark.

What are our findings?

Our review suggests that, although firms have made a number of positive changes to improve their governance and controls around benchmark activities, significant further work is needed to ensure that all of the risks are managed appropriately. It is essential that firms’ senior management pay heed to the findings and messages outlined here, and take the steps necessary to identify and resolve any outstanding issues.

What are the next steps?

We expect all firms to identify, manage and control the risks arising from their benchmark activities, put in place appropriate oversight and controls, and instil a culture in which market integrity and consumers interests are at the heart of how they run their businesses.

We have provided feedback to each of the firms involved in our review. Where we have identified shortcomings, we expect improvements to be made. We will follow up on this work as part of our supervision of benchmark activities.

More information

Read our Benchmark pages

Press release: FCA find firms still failing to fully manage benchmark risks