A DTI consultation document Draft Regulations on the Operating and Financial Review and Directors' Report was published on 5 May. The Government is proposing that
some 1,300 quoted companies should be required to prepare an OFR for financial years beginning on or after 1 January 2005.

The Government has asked the ASB to prepare standards for the mandatory OFR, building on the Board's existing statement of best practice (revised 2003). To assist
the ASB in its initial responsibilities, the Board has
established an Advisory Committee on the OFR, with the following members:

• Mike Corless, Global Head of
  Equity Research, HSBC Asset
  Management
• Deborah Doane, Chair,
  Corporate Responsibility (CORE)
  Coalition
• Guy Elliott, Finance Director,
  Rio Tinto plc
• Margaret Ewing, Group Finance
  Director, BAA plc
• David Morris, Company
  Secretary, GUS plc
• Professor Andy Neely, Centre for
  Business Management,
  Cranfield School of
  Management
• Andrew Tusa, Head, Corporate
  Governance, Deutsche Asset
  Management
• Janet Williamson, Policy Officer,
  Trades Union Congress
• Observers from the Department
  for Environment Food and Rural
  Affairs and the Department of
  Trade and Industry

The Board is working towards issuing an exposure draft of the first OFR standard in the second half of 2004, to be finalised in 2005.