News December 2015 FRC issues draft Plan and Budget for 2016/17

FRC issues draft Plan and Budget for 2016/17

21 December 2015


The Financial Reporting Council (FRC) today publishes its Draft Plan, Budget and Levy Proposals for 2016/17 (PDF). This will be the first year of its new 2016/19 three year strategic programme. This consultation which seeks stakeholder views on the FRC’s priorities and resources will close on the 12 February 2016.
FRC CEO Stephen Haddrill said:

“Our work continues to be guided by our mission, which is to promote high quality corporate governance and reporting to foster investment. We will aim to do so in a way that avoids adding to regulatory burdens wherever possible and do not expect, over the next three years, to amend codes and standards beyond those changes already announced. We are seeking views on our priorities and resources for 2016/17.
A key focus for the coming year will be to implement the responsibilities we are being given as the competent authority for audit regulation under the EU Audit Regulation and Directive.  We will make the most effective use of our new role to promote the investor and wider public interest in the quality of audit.
On corporate governance, we will focus on our work with stakeholders on corporate culture and publish a report on observations of good practice. We will also take action to enhance effective investor stewardship.
On actuarial matters we will complete our updated framework of actuarial standards and review our oversight of the actuarial profession.
Our record on monitoring of corporate reporting and auditing is strong as shown by an external review this year of our effectiveness, but we are determined not to stand still and will be taking further action to enhance this area, including through greater transparency of our findings.”

The FRC’s budget for 2016/17 is proposed at the same level as agreed for 2015/16. However, within that overall level, the FRC proposes to seek increased resources from the audit profession to fund additional work arising from the new EU audit legislation.

Please note: The table on page 21 has been corrected.

Notes to editors:

The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.