In a new report, the UK’s Financial Conduct Authority (FCA) details the results of a review of firms benchmark oversight says that it found that

British financial firms have made some progress on improving the oversight and controls around the use of financial benchmarks, the UK’s Financial Conduct Authority (FCA) announced on Wednesday.

However, this progress has been “uneven across the industry and often lacked the urgency required given the severity of recent failings,” the FCA says in a statement.

Firms have work to do to identify the full range of their benchmark activities, and to improve their management of these risks, the FCA says.

The FCA review found that some firms are interpreting the definitions established by the International Organization of Securities Commissions (IOSCO) too narrowly, and failing to identify a wide enough scope of benchmark activities.

Additionally, some firms have not made enough effort to properly identify the conflicts of interest that could arise from their businesses and benchmark activities, the FCA says.

In the wake of its review, firms need to continue to strengthen governance and oversight of benchmark activity, identify and manage conflicts of interest, fully identify their benchmark activities across all business areas, establish oversight and controls for any in-house benchmarks and implement appropriate training programs, the FCA says.

“We have seen widespread historic misconduct in relation to benchmarks. It is now critical that firms act to restore trust and confidence in the system. Firms should have in place systems to manage the risks posed by benchmark activities and to address the weaknesses that have previously been identified,” says Tracey McDermott, director of supervision investment, wholesale and specialists at the FCA, in a statement.

“We recognize that this is a significant task and firms had made some improvements, but the consistency of implementation and speed at which these changes have been taking place is disappointing. Firms should take our findings on board and consider further steps to improve their oversight,” she adds.