News March 2020 Revised Standards for Investment Reporting

Revised Standards for Investment Reporting

26 March 2020
The Financial Reporting Council (FRC) has today issued revised Standards for Investment Reporting (SIRs) 1000-5000, and a new SIR 6000 dealing with reports on Quantified Financial Benefits Statements (QFBSs) published in accordance with the City Code. The revisions had been due to come into force in June, however due to the impact of the covid-19 pandemic, implementation has now been delayed until September to allow firms to properly consider and plan for the changes.

Reporting Accountants (RAs) play a critical role in the efficient and effective operation of capital markets through the various reporting engagements they carry out in connection with UK investment circulars. Their work is often closely related to the audit of financial statements. The SIRs provide clarity about the expectations on those carrying out the work, and to ensure consistently high-quality work is performed.
SIR 1000 provides basic principles and procedures for all relevant engagements, and SIRs 2000-6000 provide additional principles and procedures for specific types of public reporting. All of the SIRs have been updated to reflect significant changes in regulations (Prospectus Regulation Rules, the UK Listing Rules, the City Code on Takeovers), and auditing standards.
The standards will be effective for new Reporting Accountant engagements starting on or after 15 September 2020. Engagements already underway before that date may be completed using the previous versions of the SIRs.
Mark Babington, Acting Director, UK Auditing Standards and Competition, said:

“The updated Standards for Investment Reporting, and the new SIR 6000 dealing with Quantified Financial Benefits statements, bring our standards in line with significant changes to regulations and auditing standards.
“The work Reporting Accountants do is of crucial importance to the UK capital markets, and these standards provide a robust and proportionate framework which gives market participants confidence in the quality of work underpinning major transactions.”

The Standards are published alongside a Feedback Statement and Impact Assessment setting out the FRC’s responses to the public consultation on exposure drafts of the SIRs between May and July of 2019.
A link to the revised standards can be viewed here.


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