As part of our focus on leadership and governance we have set out our expectations of the experience, skills and attributes of candidates for the key roles of Independent Non-Executives, Heads of UK firm, Chairs, Heads of Audit and Ethics partners at the Big Six firms. In a pre-appointment meeting we will assess how well we believe appointees meet these criteria and feed this back to senior management of the firm.
Process for pre-appointment meetings with independent non-executive directors and certain roles within the firm
Who do we expect to meet and when?
We expect to meet the firm’s proposed, final candidate for all independent non-executive (INE) positions and certain other roles as agreed with the firms ahead of a formal appointment being made. For roles which are elected by the partners, we will meet the newly elected individual as soon as possible after their appointment.
What is the process for arranging meetings?
Once the firm has decided on a proposed appointment, the firm should contact Claire Lindridge to arrange a meeting and provide the information requested. We will try and schedule a meeting as soon as possible so as not to unduly delay the proposed candidate’s formal appointment process.
Who from the FRC will be at the meeting?
The FRC CEO and an FRC Executive Director Audit & Actuarial Regulation will be present for meetings with the prospective senior INEs. Two FRC executive directors will be present for other candidates.
There will also be an FRC note taker present at all meetings to allow us to take a short note of the meeting.
What will be the format of the meeting?
We will send out a note to the candidate ahead of the meeting covering the topics we expect to discuss at the meeting. We will tailor the content of the meeting depending on the role the individual is being put forward for and their background. We would normally expect to cover the following with the candidate:
- what they see as their role as INE/ other role;
- their understanding of our strategy and the audit firm governance code;
- their awareness of current audit supervision issues for the firm or issues from the recent past; and
- their expectations for their induction programme.
We will discuss any issues which we think the candidate should be aware of and there will also be an opportunity for the candidate to ask questions.
What will happen after the meeting?
We will write to the Head of UK firm to provide high level feedback on the meeting and to identify any areas which it might be helpful to focus on as part of the candidate’s induction process.