FRC publishes three-year Strategy, and 2018/19 Plan and Budget
26 March 2018
The Financial Reporting Council has today published its 2018/21 strategy and its plan for the 2018/19 financial year
following a public consultation.
The FRC’s priorities for the coming year include a comprehensive update of the UK’s Corporate Governance and investor Stewardship Codes, a review of how audit should in future serve the public interest, a new system for audit firm monitoring and supervision, and other work to embed its mission to promote transparency and integrity in business.
Stephen Haddrill, CEO of the FRC said
“Our work through our three-year strategic cycle is focussed on enhancing the UK’s credentials to compete on the global stage. Improving confidence in UK business for the public interest is vital as the nation navigates through major economic and social upheavals. Our work to promote transparency and integrity in business means ensuring confidence in the way companies are governed, their financial reports and their audits is of utmost importance. Successful companies are vital to society by creating jobs, driving economic growth and helping the UK to prosper. While we don’t have conventional regulatory powers to address weaknesses in corporate reporting, we will through this strategy period ensure Boards are aware of their governance and reporting requirements. Where we find failings we will act.”
The FRC’s consultation on the future of the UK’s Corporate Governance Code received over 270 responses, illustrating how important stakeholders consider it to be. The FRC will publish the updated Code in the summer and consult on a new Code for larger private companies. By the end of the year a consultation on the future of the Stewardship Code for investors will be published leading to a fundamental reshaping of the country’s framework for corporate standards for the future after the UK exits the EU.
The FRC is collaborating with other bodies on the future of audit to ensure it meets public expectations and implementing a new approach to audit firm monitoring and supervision. This will involve focussing on five areas; leadership and governance; values and behaviours; business models and financial soundness; risk management and control; and evidence on audit quality, including from the FRC’s programme of audit quality reviews.
The FRC is keeping it preparers’, pension and insurance levies at the same level as for 2017/18. They will continue to be collected on a voluntary basis.
Please find consultation responses to the Draft Plan and Budget here.
Notes to editors:
The Financial Reporting Council’s (FRC) mission is to promote transparency and integrity in business. 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.
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