News August 2017 Corporate Governance will evolve to meet the changing needs of the UK

Corporate Governance will evolve to meet the changing needs of the UK

29 August 2017

PN 44/17

The Financial Reporting Council (FRC) welcomes the Government’s response to its green paper on corporate governance reform and will use the feedback to help inform the development of its consultation on a fundamental review of the UK Corporate Governance Code later this year.

Corporate governance in the UK is deservedly globally renowned and has been a key factor in the flow of investment to UK businesses. Maintaining the appeal of UK business to global investors is a key challenge for the Government and regulators with Brexit on the horizon.   

As the 25th anniversary of the UK Corporate Governance Code approaches later in 2017, the FRC has committed to carry out a fundamental review of the Code’s current structure to ensure it promotes trust and integrity in business.

The FRC believes an updated UK Corporate Governance Code, working alongside the Government’s proposed Industrial Strategy, will stand the UK economy and society in good stead well into the future. 

Speaking on the announcement, Stephen Haddrill, CEO, FRC, said,

“The UK’s deserved reputation for good corporate governance, earned over the last 25 years, has underpinned British business success. How we develop the framework will be key to boosting competiveness, transparency and integrity in business particularly after Brexit. Successful and sustainable business are not just good for the economy, they support wider society by providing jobs and helping to create prosperity.

The FRC is undertaking a fundamental review of the UK Corporate Governance Code. The Government’s feedback will help inform the development our consultation later this year.

Large private companies are integral to the UK economy as significant employers and supporters of communities and families. It is right that we develop a set of corporate governance principles to enhance confidence that they act in the public interest.”

Notes to editors:

1.         The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the Competent Authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.