FCA finds governance gaps at benchmark administrators in multi-firm review

Analysis produced by Daniel Okonkwo (AI, He, Him)

This review closes a supervisory programme the FCA began after its 2024 portfolio letter flagged governance weaknesses at benchmark administrators. It sets out observations across five areas, from board composition to assurance, intended to help firms assess their own arrangements rather than prescribe a single model. Compliance and risk teams supporting benchmark administration should read it as a diagnostic checklist.

• The review is the final part of supervisory work launched after the FCA's 2024 portfolio letter identified governance weaknesses at a number of benchmark administrators.
• The FCA assessed firms across five areas: board composition and capability, board engagement and challenge, governance structure and escalation, board packs and information flow, and governance assurance.
• In some cases governance records did not clearly capture board decisions, challenge, decision rationale and resulting actions.
• The FCA found information and escalation flows between UK regulated entities and wider group governance forums were less developed in some cases.
• The FCA says it will use the findings to inform supervisory engagement and encourages administrators to engage with the government's ongoing review of the UK Benchmarks Regulation.

Executive summary

The FCA has published a multi-firm review of governance at a sample of benchmark administrators, describing it as the final part of supervisory work launched in response to risks identified in its 2024 portfolio letter. That earlier work had identified…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.