FRC CEO Richard Moriarty: An update on some of our key projects to create the conditions that support transparency and trust in the UK economy

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Published: 14 November 2025

Since the beginning of 2025 we have been actively examining how we can ensure our regulatory approach is genuinely proportionate while maintaining the high standards of audit and corporate reporting that give investors and all stakeholders confidence in the UK as a place to grow and invest. Good regulation is smart, targeted, proportionate, and an essential enabler of growth and investment. As we head towards the end of the year, I wanted to share a few examples of the progress of some of that work.

Through our Future of Audit Supervision Strategy (FASS), we're looking at shifting towards a more proportionate, system-focused approach that takes a holistic view of supervising the whole of the audit market to enable a more transparent and risk based assessment of audit quality and systems.

We've launched our System of Quality Management Scalebox programme, which offers 17 of the smallest PIE audit firms a reduction in certain formal inspection and supervision requirements during 2025/26 and 2026/27. In exchange, firms will engage in bespoke improvement programmes developed by the FRC to build their capabilities in the PIE audit market. This initiative recognizes that smaller firms need time to implement quality improvements and demonstrates our commitment to bridging the audit quality gap while supporting market diversity and resilience.

Small and medium-sized enterprises are a vital bedrock of the UK economy, with just under 5.5 million SMEs employing around 16.6 million workers. Access to audit is often crucial for these businesses to secure the capital they need to scale and grow. That's why we launched our SME Audit Market Study, engaging with over 500 stakeholders. In July, we published emerging findings and potential remedies, alongside a consultation on new guidance to help auditors deliver work appropriately scaled to the complexity of smaller businesses, potentially lowering the costs to those businesses. Throughout 2026, we'll be working with the Recognised Supervisory Bodies to ensure a more consistent approach to SME audit regulation.

We're supporting the Department for Business and Trade's Modernising Corporate Reporting project, which represents a once-in-a-generation opportunity to simplify and streamline reporting requirements, particularly for medium and smaller listed companies. With government partners, we're also exploring how technology can reduce the burden on companies whilst making it easier for investors to access and compare company data.

This is just a sample of what we’re doing to support growth through proportionate regulation and in our latest podcast out today, our Director of Market Intelligence and Insights, Laura Warren, and Deputy Director of Professional Bodies Supervision, Dhruve Shah, discuss how we're putting these principles into practice across our work.

We're committed to challenging ourselves on proportionality, and I look forward to continued engagement with all of our stakeholders.