FRC consults on Guidelines for Enforcement Measures
News types: Consultation Announcement
Published: 28 November 2014
70/14
The Financial Reporting Council (FRC) is issuing for consultation Guidelines on how it proposes to impose enforcement measures set out in the Companies Act 2006 to address non-compliance by the audit recognised supervisory bodies and recognised qualifying bodies with their Companies Act obligations. The FRC believes that upholding high standards within audit regulation promotes trust in financial reporting which in turn gives shareholders and savers confidence to invest in UK capital markets.
The new Guidelines indicate when and how the statutory enforcement measures will be applied by the FRC and will assist its Board when considering when and which enforcement measures to impose. The Guidelines will promote transparency and consistency of the FRC’s likely approach and consideration when imposing enforcement measures. The enforcement measures are not intended to be compensatory or punitive; instead they are a means of correcting non-compliance and encouraging future compliance by those bodies.
The consultation period in respect of the Guidelines closes on 20 February 2015.
Read the Consultation: Guidelines on Enforcement Measures Against Recognised Supervisory Bodies & Recognised Qualifying Bodies.
Notes to editors:
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.