The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance, has today published a discussion paper which aims to stimulate an on-going dialogue with its stakeholders about ways to improve the cost-effectiveness of FRC regulation without compromising the achievement of high standards of corporate reporting and governance.

In line with its commitment to the principles of good regulation, the FRC has in the past few years taken or proposed a range of actions to reduce the costs to market participants of the regulation for which it has responsibility. This document highlights some of the most significant of these actions and invites stakeholders to comment on further opportunities to reduce regulatory costs whilst preserving confidence in corporate reporting and governance.

The main focus of the discussion paper is on opportunities to reduce the costs associated with FRC regulation rather than on its internal costs.

Proposals highlighted in the paper include:

• a major project to review the relevance and complexity of corporate reporting
• the FRC’s continuing work to promote cost-effectiveness in the development of international accounting and auditing standards.

The paper also identifies further initiatives on which it might consult in the future, including a proposal to provide a summary of FRC regulatory requirements which apply to SMEs.

The FRC would welcome feedback by 31 May 2008 from interested parties on the questions set out in the discussion paper and any other aspects of the cost-effectiveness of FRC regulation.

FRC Chief Executive, Paul Boyle, said:

“We are committed to meeting the principles of good regulation and welcome views on ways to improve the cost–effectiveness of FRC regulation without reducing the necessary high standards we set for corporate reporting and governance in the UK. We hope that the publication of this paper will stimulate a continuing dialogue with stakeholders about ways to improve the cost effectiveness of FRC regulation whilst preserving confidence on corporate reporting and governance.”

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance.
2. The FRC’s functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the Committee on Corporate Governance.
3. The discussion paper is designed to be read in the context of the FRC’s Regulatory Strategy, which is available on the website at http://www.frc.org.uk/about/ and the FRC’s Draft Plan Budget 2008/09, at http://www.frc.org.uk/about/plans.cfm.
4. All press enquiries should be addressed to David Andrews, Policy and Planning Manager, on 020 7492 2382.