Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Governance regulator to prioritise global clout

Jaimie Kaffash | March 6, 2012
Promoting the UK's approach to corporate governance and its position on the break-up of the audit market will be the Financial Reporting Council's priorities in 2012, the regulator said.

Promoting the UK's approach to corporate governance and its position on the break-up of the audit market will be the Financial Reporting Council's priorities in 2012, the regulator said.

Its 2012/13 annual plan, announced on Friday, confirmed that the FRC's funding was to be £400,000 (2.5 percent) lower than in 2011/12. However, this will not require an increase in the average levy charged to publicly traded companies, insurance companies and pension schemes, it said.

Chief executive Stephen Hadrill said a "great part of our resource and effort will be devoted to influencing international debate".

The FRC, alongside the Department for Business, Innovation and Skills, will aim to "win recognition for the strengths of the UK governance and reporting system -- a system that has played a major part in securing investor confidence in the UK capital markets, enabling them to become the second largest market in the world, so of critical value to the European Union as a whole," Hadrill added.

Its report said that the European Commission's proposals on the future of audit might "threaten the quality of audit" and the FRC would continue to play an active role in this debate.

The regulator would also continue to extol the virtues of the "comply or explain" system in its role as chair of the European Corporate Governance Codes Network.

The government is currently consulting on the future of the FRC, in an attempt to make the body more streamlined.

Reform would allow the FRC to "address larger cross-cutting issues by bringing together our work on governance, accounting and actuarial standards and audit," Hadrill said. It would also enhance international influence and secure public confidence by reinforcing its independence as a regulator, the chief executive added.

The report confirmed that the FRC will produce a revised corporate governance code in October.

 

1 

Sign up for CIO Asia eNewsletters.

COMMENTS
blog comments powered by Disqus