FRC publishes its priorities and funding for 2012/13

News types: Company Specific

Published: 21 May 2012

FRC PN 361

The Financial Reporting Council (FRC) has today published its priorities and funding plans for 2012/13.   The Plan & Budget 2012/13 is on the FRC website.

Announcing the Plan & Budget, the FRC Chairman, Baroness Hogg, said:

“As we emphasised during the consultation on reforms to our powers and structure, to be effective we must maintain a dialogue with those who are interested in our work. The FRC is and will remain an outward-looking organisation. Our Plan for 2012/13 reflects that approach. We place particular emphasis on the need to influence EU and international developments. We remain fully committed to the principles of good regulation and to keeping the costs associated with the FRC, both in terms of our own costs and the regulatory regime we operate, under careful control.”


Priorities  In 2012/13 the FRC will focus on four broad objectives:
  • Monitoring the health of corporate governance and reporting in the UK and making sure that its codes and standards remain fit for purpose and that planned changes are introduced at the right time.
  • Making sure that the UK’s approach to corporate governance and reporting is properly understood and appreciated in the EU and internationally. Working with the Department for Business, the FRC will press for the policies of the EU on governance and audit to serve the interests of investors.
  • Focussing on the effectiveness of its monitoring, oversight and disciplinary work, ensuring that the FRC is responsive to emerging risks, joined up, transparent and proportionate. The FRC will review further the scope of its conduct work and seek to enhance the speed and effectiveness of its disciplinary work, including its sanctions.
  • Following Government approval and subject to Parliamentary debate, the FRC will ensure that the final decisions on the reform of the FRC are introduced effectively.
Funding The FRC’s overall budget for 2012/13 at £22.4m, and the budget for core operating costs at £14.6m, are 2% lower than for 2011/12. There will be no increase in the average levy charged to publicly traded companies, insurance companies and pension schemes.

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.
  2. The FRC promotes high standards of corporate governance through the Governance Code and Stewardship, 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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