On 28 May 2026, the Financial Conduct Authority (FCA) updated its webpage which sets out its findings from a review of how benchmark administrators manage data risks.
The FCA completed a multi-firm project looking at the quality of calculation controls in the benchmarks sector and this is reported on in chapter 5 of the webpage. The FCA looked at error handling arrangements, including error identification, classification, prioritisation and notification. The FCA noted that there were two distinct approaches being taken by firms in how they captured and handled errors: Quantitative (data-led) and Qualitative (judgement-led). Both models have strengths and weaknesses.
The FCA has also updated the next steps section of the webpage. It will be carrying out further work later this year on other risks set out in its December 2024 portfolio letter, including corporate governance. It adds that addressing any weaknesses in data quality and calculation controls should help firms gain confidence in, and better demonstrate, the effectiveness of their governance and oversight arrangements, as well as strengthening their overall operational resilience.