FRC to focus on embedding change, opportunities to deregulate and promoting improvements
News types: Policies and Responsibilities
Published: 28 October 2015
The FRC will:
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Seek to put the UK indisputably in first place in terms of the quality of corporate reporting, giving investors globally the greatest possible confidence in UK investment. The FRC will do so by working with companies to make the most of the changes to codes, standards and regulations introduced since the financial crisis, and by avoiding the distraction of introducing further changes to codes and standards wherever possible.
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Seek to put the UK indisputably in first place too for the quality of its auditing, making the most of its new role as the Single Competent Authority for audit under the new EU legislation. The aim is that by 2019 at least 90% of FTSE 350 audits will require no more than limited improvements as assessed by the FRC’s monitoring programme. The FRC will work in collaboration with the profession to give assurance and confidence to investors globally.
These pillars of the FRC’s strategy support the UK’s push for economic growth by fostering investment. The FRC will also contribute to growth by looking for opportunities to deregulate and cut business costs where it is safe to do so.
Stephen Haddrill, CEO FRC, said:
“The FRC’s goal is to ensure reporting and audit in the UK are world leading and provide assurance to global investors to support UK businesses and growth. The strategy for 2013/16 was informed by lessons from the financial crisis. There was a need to take robust action to restore confidence among the general public and in particular investors.
In our 2016/19 strategy, there is a change of emphasis. We will work with investors, businesses, professionals and professional bodies to ensure the changes already made are successful in securing the highest quality in reporting and governance.”
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.