In its Annual Report for 2012/13 the Financial Reporting Council (FRC) outlines the benefits of the reform of the organisation. This combined annual report is the first since the reforms that brought the FRC’s eight regulatory bodies into one were approved by parliament and its stakeholders.
FRC Chairman Baroness Hogg said:
“Reform has enabled the FRC Board to work more effectively with the market. The FRC has raised its game and created a greater focus on its primary task - trying to ensure that investors in the capital markets have what they need: effective boards; useful annual reports and accounts; easily comparable standards and good audit and actuarial standards.
Over the nine years I have been involved with the FRC we have made good progress developing and promoting high standards of corporate governance. However we continue to work towards closer cooperation with the UKLA to retain confidence in the UK’s corporate governance regime.”
Looking ahead, key priorities for the FRC include:
To ensure companies assess and report better on their strategies, business models and risks, including by finalising and implementing the recommendations of the Sharman panel’s going concern guidance, Code requirements on risk management and guidance for directors on narrative reporting.
Continue to lead debates at European level on key issues including long termism, audit tendering, non-audit services, IFRS endorsement and the company law action plan.
Through the Financial Reporting Lab provide practical help to make annual reports more relevant, concise and free of clutter.
Following the recommendations of the review of actuarial regulation, form a stronger partnership with other regulators to address the risks arising from actuarial work.
FRC Chief Executive Stephen Haddrill said:
“We have a full and challenging agenda to anticipate and respond to developments in product and capital markets. Our focus on Europe will continue to grow as we seek to influence further the debates in Brussels in the run up to and beyond next year’s Parliamentary elections and change of Commission, especially on long-term finance, audit rotation and the importance of a Stewardship approach.”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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