FRC sets out vision for modern and effective regulation
News types:
Published: 3 September 2026
The Financial Reporting Council (FRC) has today published an update to Our Approach to Regulation, setting out how the FRC’s regulatory approach will continue to support growth, build trust and drive confidence in UK markets.
‘Our Approach to Regulation’ reinforces the FRC’s commitment to serve the public interest through targeted, effective and agile regulatory activity. This approach seeks to recognise the FRC’s role within the broader regulatory eco-system and outline how the FRC carries out its regulatory duties and engages with stakeholders to build trust, enhance public confidence, and create the conditions for sustainable economic growth.
The FRC’s regulatory approach centres on:
- Enabling Growth – Supporting business-led growth by shaping the conditions for success. Through its Innovation and Improvement Hub, ScaleBox programme and regulatory sandboxes, the FRC is helping firms innovate, build capability and navigate an evolving regulatory environment with greater confidence.
- Proportionate and Practical Regulation – Utilising tailored, principles-based regulation focused on reducing burden while upholding trust. This includes first of its kind guidance, already released to support the audit firms in the use of generative and agentic AI tools in audit engagements.
- An Integrated Model – Aligning standards, supervision, and enforcement to drive improvement and support market confidence. Through its reviews of its supervision and enforcement models, the FRC has already prioritised creating a more joined-up approach to support continuous improvements and accountability.
- An Engaged Regulator – Shaping smarter outcomes through data, dialogue, and real-world insights. By delivering market studies, stakeholder engagement, consultations and data-driven analysis, the FRC is identifying emerging issues, understanding market challenges and ensuring regulation is informed by real-world experience
The document sets out how the FRC’s operations, activities and functions work together to maintain confidence in the UK’s corporate governance, corporate reporting, audit, and actuarial sectors. It demonstrates how the FRC is embedding the principles of good regulation set out in the Regulators’ Code and utilising its regulatory tools to safeguard trust while enabling growth.
Richard Moriarty, FRC CEOThe UK’s regulatory framework is a strategic national asset. Our approach sets out a clear vision for modern regulation: targeted where risks are greatest, proportionate where action is needed, and responsive to a rapidly changing environment. In doing so, we can support growth while maintaining the confidence on which markets depend.
We embed the principles of the Regulators' Code by building trust, balancing protection with progress, and using our regulatory tools in a coordinated and proportionate way. Our approach to regulation creates a framework that supports growth, accountability and confidence across the corporate reporting ecosystem.