News March 2017 Independent review of Financial Reporting Council sanctions

Independent review of Financial Reporting Council sanctions

30 March 2017

PN 18/17

The Financial Reporting Council (FRC) administers a number of enforcement procedures in accordance with its various responsibilities, including its responsibilities as the Competent Authority for audit in the UK. In view of stakeholder feedback the FRC has decided to commission an independent review of the sanctions imposed under its enforcement procedures. This review is timely given that the FRC is approaching its one year anniversary as the Competent Authority.

The review will consider matters such as whether the reasons for imposing sanctions set out in its guidance and policies remain appropriate, the fairness and the effectiveness of the range of sanctions available under the enforcement procedures, and whether the financial penalty sanctions, in particular, are adequate to safeguard the public interest and deter wrongdoing.

The review will be conducted by an independent panel chaired by former Court of Appeal Judge, Sir Christopher Clarke, and will comprise Peter Chambers and Andrew Long who bring extensive subject matter and regulatory expertise.

The independent panel will in due course issue a call for evidence and seek evidence from a range of relevant organisations and individuals. Further announcements will follow as the review progresses.

Biographies of the independent panel members

Lord Justice Christopher Clarke
Sir Christopher Clarke read Classics and Law at Gonville & Caius College Cambridge. A Harmsworth Scholar, he was called to the Bar in 1969 and took silk in 1984.

From 1990-2004 he was a Recorder and a Deputy High Court Judge from 1993-2004. He sat as a High Court Judge in the Commercial Court from 2005 to 2013 and was appointed a Lord Justice of Appeal in 2013.

In 1975 he became an Attorney of the Supreme Court of Turks and Caicos Islands. He was formerly in practice at and became Head of Brick Court Chambers. He was a Judge of the Courts of Appeal of Jersey and Guernsey from 1998 to 2004. He was a Councillor of the International Bar Association from 1988-1990; Chairman of the Commercial Bar Association from 1993-95; and a Member of the Bar Council from 1993-99. He was Counsel to the Bloody Sunday Inquiry, 1998-2004. He is member of the Court of Ecclesiastical Causes Reserved and of the Court of Appeal of Bermuda. He was the Treasurer of the Middle Temple for 2016.

Peter Chambers
Peter Chambers is a former Chief Executive Officer of Legal & General Investment Management (LGIM).

Previously Peter held a range of key positions in several prominent investment management businesses. Before joining LGIM, he was Chief Executive Officer for Framlington Group, Chief Investment Officer at Gartmore, Chief Investment Strategist for James Capel & Co. Ltd, Head of International Equities at Citibank Global Asset Management and managed UK Pension funds at Lazard Brothers. Peter has a broad range of industry expertise ranging from developing a hedge fund business to managing money for Sovereign Wealth Funds.

Peter is Chairman of CRAG (Company Reporting & Auditing Group) and a Senior Advisor to a number of companies including Casey Quirk by Deloitte, the US management consultancy business.  Peter was a Non-Executive Director of the Financial Reporting Council between 2007 and 2014 and a member of the Conduct Committee.  He was also a Director of the Investment Management Association, a member of the Supervisory Board of EFRAG and sat on the joint FSA and Treasury review panel, considering rights issues.  Peter holds a MBA from the Manchester Business School.

Andrew Long
Andrew Long is an experienced decision maker specialising in financial regulation. He was previously Chair of the Regulatory Decisions Committee of the Financial Conduct Authority. He now chairs the Determinations Panel of the Pensions Regulator, has been a Judge of the First Tier Tax Tribunal since 2009, and is a member of the Ofgem Enforcement Decisions Panel. He was a Deputy District Judge of the High Court and County Court for 15 years.
Andrew’s previous roles included being a Board member of the Solicitors Regulation Authority board. He is a published author on the law of financial regulation.
Andrew’s main career was as a partner at Pinsent Masons, solicitors, where he led the financial regulation team.

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.