The review was conducted by independent professional services company PwC and involved an examination of the policies and processes through which Argus establishes price benchmarks for oil, thermal coal, coking coal, natural gas, biomass and petrochemicals. A “reasonable assurance” review was carried out for all benchmarks apart from new prices added this year for the first time.
Argus designed the policies and processes reviewed by PwC to comply with the principles for price reporting agencies (PRAs) set out by the International Organization of Securities Commissions (the Iosco PRA Principles) in October 2012.
Argus Media Group chairman and chief executive Adrian Binks said: “This is the sixth benchmark assurance review that we have successfully completed. We are committed to complying with the Iosco PRA Principles, which help to reassure our customers that the prices they use for physical supply, risk management, analysis and planning purposes are robust and reliable.”
In October 2013, Argus became the first PRA to complete an independent review of oil benchmarks and was the first agency to extend the Iosco PRA Principles to non-oil energy benchmarks, in January 2014. The Iosco PRA Principles were endorsed by the G20 in November 2012. They cover governance, control, quality, integrity and conflict management in relation to commodity benchmark price assessments published by PRAs and require an annual external audit.
Argus’ description of its policies and procedures, together with the full assurance review, are available at Governance and Compliance page.
Argus' methodologies are available on its website at our Methodology page.