FRC consults on its priorities and funding for 2012/13
News types: Codes and Standards Announcements
Published: 2 March 2012
The Financial Reporting Council (FRC) has today published its draft priorities and funding proposals for 2012/13 in advance of its Annual Open Meeting which will be held on Tuesday, 20 March 2012.
The FRC will finalise its 2012/13 Plan and Levy Proposals at the end of April 2012, taking account of the responses to its consultation paper. Responses are requested by Friday, 13 April 2012.
Priorities
The paper “Draft Plan & Budget 2012/13” is on the FRC website at Draft Plan & Budget 2012/13 (PDF).
In 2012/13, the FRC proposes to focus on the following objectives:
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Making sure that the UK’s approach to corporate governance and reporting in terms of its codes and standards and oversight work is properly understood and appreciated in the EU and internationally. Working with the Department for Business, the FRC will in particular press for the policies of the EU on governance and audit to serve the interests of investors.
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Building on the Stewardship Code to strengthen further the quality of investor engagement, and implementing changes to the wording of the Corporate Governance Code to reflect decisions on matters such as diversity that have already been announced.
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Making sure that UK codes and standards remain fit for purpose in all areas and that planned changes are introduced at the right time. The FRC will aim in particular to introduce a new UK accounting framework (UK GAAP) after the completion of final consultations, with a view to it coming into effect in 2015.
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Reinforcing the effectiveness of its monitoring, oversight and disciplinary work, ensuring it is responsive to emerging risks, joined up, transparent and proportionate. The FRC will review further the scope of its work and seek to enhance the speed and effectiveness of its disciplinary work, including by reviewing sanctions.
FRC Reform
The Government and FRC have consulted on proposals to reform its structure and powers. The finalised Plan for 2012/13 will reflect the outcome of the consultation.
During 2012/13, the FRC will ensure that the final decisions on reform are implemented effectively.
Funding
The FRC’s budget for core operating costs for 2012/13 is set to be £0.4m (2.5%) lower than anticipated expenditure in 2011/12. The FRC does not expect that the proposed budget will require an increase in the average levy which is charged to publicly traded companies, insurance companies and pension schemes.
Annual Open Meeting
The FRC’s Annual Open Meeting will be held at 4.00pm on Tuesday 20 March 2012 in the Council Chambers of the Institution of Engineering and Technology (IET), 2 Savoy Place, London WC2R 0BL. There will be an introduction by the Chairman, a report by the Chief Executive and the opportunity to ask questions.
Anyone with an interest in the FRC’s work on corporate governance, corporate reporting, auditing, actuarial practice and its oversight of the accountancy and actuarial professions is welcome to attend. If you wish to attend, please email [email protected].
- 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 promotes high standards of corporate governance through the Corporate Governance Code and Stewardship Code, but does not monitor or enforce its implementation by individual boards. It sets standards for corporate reporting and actuarial practice and monitors and enforces accounting and auditing standards. It also oversees the regulatory activities of the professional accountancy and actuarial bodies and operates independent disciplinary arrangements for public interest cases involving accountants and actuaries.
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