FRC welcomes proposals to strengthen UK corporate governance, audit and reporting

News types: Consultation Announcement, Generic Announcement, Policies and Responsibilities, Publications, Statements

Published: 18 March 2021

The Financial Reporting Council (FRC) welcomes the consultation launched today by the Department for Business, Energy and Industrial Strategy (BEIS) - Restoring trust in audit and corporate governance to reform the UK’s audit, corporate reporting and corporate governance system.

Today’s publication of the Government’s proposals is the response to the three independent reviews by Sir John Kingman, Sir Donald Brydon and the Competition and Markets Authority. It includes measures to enhance the quality of corporate governance, corporate reporting and audit and establish the strong, effective, independent regulator envisaged by Sir John Kingman. These measures have a vital role to play in the UK’s future economic success and in shaping the business agenda.

Sir Jon Thompson, CEO of the FRC said:

I welcome today’s publication as a significant milestone towards setting up a new, robust and independent regulator, which has the necessary powers to deliver its objectives, and on the ambitions set out in the three independent reviews.
The FRC is already delivering on its commitment to transform, implementing reform across a variety of areas, where we are able to do so. This includes the operational separation of the Big Four audit practices, stronger and more timely enforcement and revisions to standards to drive higher quality work.
We will now work with colleagues in government and other regulators to ensure that the UK has an effective and clear regulatory framework, well understood by those we regulate and which supports high standards of audit, corporate reporting and corporate governance;  helping to reinforce the United Kingdom’s position as a key global centre for investors and businesses.”

The full consultation document, Restoring trust in audit and corporate governance , is available here .