FCA blasts the banks over their slow pace of reform
The City watchdog has told banks to sharpen up their efforts to learn lessons from scandals such as foreign exchange and Libor rate rigging that have already cost them billions of pounds in fines.
Progress so far was disappointing and improvements "had been uneven across the industry and often lacked the urgency required given the severity of recent failings", the Financial Conduct Authority (FCA) said.
But it said that "some progress had been made on improving oversight and controls and benchmarks" following the scandals involving the benchmark rates in Libor - the interbank lending rate - as well as in foreign exchange and gold markets.
It said it was writing to lenders to provide feedback and would be following up on the work as part of its regular supervision of firms.
Tracey McDermott, director of supervision for investment, wholesale and specialists at the watchdog, said: "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."