FRC publishes guidance for UK Corporate Governance Code 2024

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Published: 29 January 2024

The Financial Reporting Council (FRC) has today published targeted and digitally accessible guidance to support companies applying the UK Corporate Governance Code 2024, launched earlier this month.

Following stakeholder feedback, the FRC approached the revision of the guidance through a focused and non-prescriptive lens of how it will be used by preparers, utilising its Stakeholder Insight Group which reflects the wide stakeholder universe that the FRC engages with.

The new guidance brings together the most relevant content from previous publications into a single, condensed, digitally accessible and user-friendly resource. It links to examples of good practice and questions to help boards effectively implement the Code's Principles and Provisions, and aims to stimulate thoughtful discussions and decision-making, rather than prescribe mandatory actions.

The FRC is keen to reiterate that guidance is not part of the Code but a separate helpful collection of information designed to help the application of the Code to different companies’ needs. It will be updated from time to time to reflect, where appropriate, other reporting or regulatory requirements that may develop in the UK from other regulators.

The guidance is split into sections which align with the Code;

  • Board Leadership and Company Purpose
  • Division of Responsibilities
  • Composition, Succession and Evaluation,
  • Audit, Risk and Internal Controls
  • Remuneration

For the first time there is a new section covering good practice for the successful management of board committees.

Other new additions include reference to;

  • Outcomes based reporting
  • Board performance reviews
  • Audit Committees and the External Audit: Minimum Standard
  • The determination material controls
  • Declaration of effectiveness of material controls

Maureen Beresford
Head of Corporate Governance
Financial Reporting Council
January 29, 2024