weigh on the minds of all the institutes that spoke to The
Accountant for the UK survey, and there are concerns the
current economic climate will lead to more regulation – slowing the
fight for simplification.
ICAS chief executive Anton Colella predicted tensions will
arise.
“I think there is going to be a real tension here with those who
will demand increased regulation,” he said.
“It may be that the very correct and appropriate desire to
simplify regulation may become subordinated in some ways within the
debate.”
CIMA chief executive Charles Tilly said one positive development
during the past year was the establishment by the UK Financial
Reporting Council (FRC) of a complexity working group to
investigate simplification. However, he warned more regulation is
on the horizon and expressed hope that the tighter regulation will
be proportionate to the issues the government is trying to
address.
“There is a balance between driving forward an organisation and
it being burdened with excessive regulation and regulatory cost,”
he said.
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By GlobalDataTilly said that while he fears more regulation will inevitably
lead to more complexity, he remains hopeful.
“The key is to focus on what are the issues that we really do
need to solve and address and let’s not then make it all too
complicated and overburden,” he said.
The regulator concurs
The UK accountancy regulator has also warned against tightening
corporate governance regulation in the wake of the credit
crisis.
FRC chief executive Paul Boyle said that instead of reviewing
regulation, more attention should be focussed on whether current
standards are being adhered to.
Speaking to members of accountancy professional bodies in London
recently, Boyle defended standards set out in the Combined Code on
Corporate Governance as comprehensive and appropriately
principles-based.
Full UK survey: UK reports daunting but exciting
times
