FRC insights on companies’ Wates Principles reporting demonstrate framework’s flexibility and ongoing commitment to effective governance
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Published: 3 December 2025
The Financial Reporting Council (FRC) has today published its first reporting insights of the Wates Corporate Governance Principles for Large Private Companies since assuming oversight earlier this year. It highlights reporting trends alongside helpful examples of positive disclosures from companies of varying sizes and complexity.
Since their development in 2018, the Wates Principles have provided a flexible framework to help private companies raise their standards of corporate governance and subsequent reporting.
Today’s report demonstrates the FRC’s commitment to supporting companies following the Wates Principles through active engagement and practical insights. Drawing on stakeholder feedback and examples from diverse company structures, the review demonstrates the framework’s flexibility while identifying opportunities for stronger reporting. The review found generally strong reporting on risk management and stakeholder engagement, while identifying some areas for improvements in reporting on purpose, board composition and remuneration.
Companies following the Wates Principles are encouraged to engage with today’s report to identify areas in which their governance reporting can be strengthened in clarity by focusing on outcomes-based disclosures, cross-referencing and reducing duplication of information.
Mark Babington, FRC Executive Director of Regulatory Standards“Since bringing the Wates Principles in-house at the FRC, we've engaged with both companies and users of governance reports to understand how we can better support meaningful disclosures. This review reflects that feedback, providing practical examples and clear guidance to help private companies tell their governance story more effectively. The flexibility of the 'Apply and Explain' approach remains the framework's greatest strength, and we want to help companies use it to build stakeholder trust through clearer, more outcome-focused reporting.”
Read The Wates Principles for Large Private Companies – Reporting Insights.
The FRC has also produced an explainer illustrating the Wates Principles “Apply and Explain” approach, covering how and why it differs from the UK Corporate Governance Code for listed UK companies.
Listen to the FRC’s latest In Conversation podcast episode in which Kate O’Neill, Director of Stakeholder Engagement and Corporate Affairs, explored the review’s insights with Lauren Tynen, Senior Corporate Governance Policy Associate at the FRC, and Fiona Graham, Chief Operating Officer of Family Business UK, a founding member of the coalition group which established the Wates Principles.
The FRC welcomes continued engagement with stakeholders and feedback can be sent by email to [email protected].