FCA updates on benchmark review

The FCA has continued its work on benchmarks by publishing the results of its review of benchmark calculations. It looked specifically at error handling arrangements, and saw that firms took either a quantitative (data-led) approach or a qualitative (judgement-led) one – both of which had pros and cons, and the robustness of the approach often depended on how they balanced the trade offs between the approaches. It was disappointed to see that there was little evidence of MI leading to change, and says firms must have clear trails between data and decision-making.

There will be further work later in the year, including on corporate governance.