FRC issues Feedback Papers on responses to consultation documents on Sanctions Guidance and Disciplinary Schemes

News types: Consultation Announcement

Published: 6 December 2012

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The Financial Reporting Council today issues Feedback Papers that summarise the comments received in response to its consultation documents: Sanctions Guidance to Tribunals and Disciplinary Schemes – Proposed Changes. These Papers also outline proposed amendments in response to those comments. 
 
The original consultation on Sanctions Guidance to Tribunals set out guidance to assist disciplinary and appeal tribunals in determining appropriate sanctions and included proposals for calculating fines while Disciplinary Schemes – Proposed Changes set out a more streamlined disciplinary process. Both consultations related to the FRC’s Accountancy Scheme but with the intention that the same changes would be made to, and Sanctions Guidance would be issued under, the Actuarial Scheme.
 
The FRC has incorporated many of the observations included in responses in the proposed revised drafts of the Schemes and the Sanctions Guidance including, in relation to the Schemes, an amended definition of misconduct and revised settlement provisions and, in relation to the Sanctions Guidance, more clarity in relation to the objectives of the Guidance and less prescription in relation to fines with a stronger emphasis on the Tribunal’s discretion.
 
The FRC will invite those who have responded to the consultation to meet and discuss the amendments to the Schemes and the Sanctions Guidance.
 
Richard Fleck, Conduct Committee Chair said:

“We have reflected on the responses to the two consultations which we regarded as constructive and helpful. The proposed revised draft documents address those comments and our further reflections. We expect to finalise and issue the Scheme and Sanctions Guidance early in 2013.”


 
Notes to editors:

  1. The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

  2. From 18 October 2012, and in accordance with the FRC reform programme, the functions of the FRC’s Accountancy and Actuarial Discipline Board (“AADB”) are now exercised by the FRC and its Conduct Committee and Executive Counsel.

  3. The FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK with a focus on cases which raise important issues affecting the public interest.

  4. The Feedback Papers and the original documents (Sanctions Guidance to Tribunals: a consultation paper and Disciplinary Schemes - proposed changes: a consultation paper) can be found at: 

    Accountancy Scheme – post consultation draft (PDF)
    Analysis of responses to consultation on proposed amendments to the Accountancy and Actuarial Schemes (PDF)
    Analysis of responses to consultation paper on Sanctions Guidance to Tribunals (PDF)
    Sanctions Guidance to Tribunals – post consultation draft – clean version (PDF)
    Sanctions Guidance to Tribunals – post consultation draft – marked up version (PDF)

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