• Register
Return to: Home > News > Majority of governance professionals oppose increase in FRC enforcement powers

Majority of governance professionals oppose increase in FRC enforcement powers

The UK’s ICSA: The Governance Institute has found 57% of governance professionals are opposed to increased enforcement powers of the Financial Reporting Council (FRC), a survey has found.

The survey, which was conducted in collaboration with recruitment agency The Core Partnership, found that only 27% of respondents were in favour of more powers being granted to the FRC, while 16% stated that they were unsure.

The FRC has recently been described as ‘chronically passive’ in a report by a Select Committee investigating the collapse of Carillion which examined the role the company’s auditors had in its demise.

One respondent in support of the FRC’s current model said: “I believe the existing FRC’s enforcement powers are adequate and would not want to see increased pressure on businesses.”

However, one critic noted “Currently it [the FRC] is a little toothless and is seen as technical body rather than an enforcer on publicly listed companies.”

The survey found that 61% of respondents’ believe that the FRC is sufficiently independent from those which it regulates, with only 11% saying otherwise. One respondent commented: “Better balance and oversight from those who do not have Big Four connections would not hurt.”

In April, the UK government launched an independent review of the FRC which is to assess its governance, impact and powers, in order to ensure it is fit for purpose.

ICSA: The Governance Institute’s policy and research director Peter Swabey commented: “Concerns were also raised that, while a risk-based approach to large audits has its benefits, this birds-eye view approach can sometimes lead to less time and focus on the subsidiaries, and missed opportunities to spot lower-level systemic process issues.”

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    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.