• Register
Return to: Home > News > Kingman expresses concern of ‘letting the FRC drift on’

Kingman expresses concern of ‘letting the FRC drift on’

Legal & General group chairman Jon Kingman, who led the review into the UK’s Financial Reporting Council (FRC), has expressed his concern to the government of ‘letting the FRC drift on’.

In a letter sent to Business, Energy and Industrial Strategy Committee (BEIS) select committee chair Rachel Reeves, he noted there is a risk that the FRC may only be ‘half reformed and lacking the teeth that only legislation can give it’.

While noting that the UK government has many ‘competing priorities’ currently, he expressed his disappointment that legislation to put the new regulator on a proper statutory base and to give it additional powers it needs to do its job was not mentioned in the Queen’s Speech on Monday. The Queen’s Speech is the formal process of opening a parliamentary session in the UK which sets out the government’s priorities.

While expressing his concerns, he also noted that significant progress had been made by the FRC and the government and gave his approval of the new chair and chief executive of the FRC who took up their roles last week.   

Kingman led the review into the FRC following the collapse of the construction company Carillion, which brought much public and political scrutiny to the audit profession and the FRC, to see if it was still fit for purpose.

His review found that it was no longer fit for purpose and that it should be replace by a new regulator known as the Audit, Reporting and Governance Authority (ARGA) which would be given greater powers to regulate the audit industry in the UK.

He also suggested that while the FRC transitions into ARGA it should it implement aspects of the transition which can be undertaken or initiated in advance of legislation.

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.