FRC publishes annual report following transformative year
17 July 2020
The Financial Reporting Council (FRC) today publishes its annual report
, setting out significant progress to implement the recommendations for change of the FRC itself and in the activities it regulates.
Under new leadership with a mandate to transform into the Audit, Reporting, Governance Authority (ARGA), the FRC has brought forward many of the recommendations of Sir John Kingman, the CMA and Sir Donald Brydon into a unified transformation programme.
Where it is in the public interest to do so, the FRC will not hesitate to bring forward reforms ahead of legislation and has been encouraged by the engagement of the larger audit firms to recent proposals for operational separation of their audit businesses.
To drive the transformation forward, the FRC has concluded a thorough review of its governance and structure. The changes will streamline operations, clarify accountabilities between the Board and the Executive and improve the effectiveness and speed of decision making. This is a significant step towards building a regulator that serves the public interest by setting high standards of corporate governance, reporting and audit.
The impact of the COVID-19 pandemic has heightened the importance of the FRC’s work to maintain confidence in the UK’s leading position as an attractive place to invest and do business. As companies have responded to the challenges of the pandemic, the FRC has issued a wide array of guidance on governance, reporting and audit. The FRC will continue to monitor the impact of COVID-19 on its regulatory activities going forward.
The annual report can be viewed here