The UK Financial Reporting Council (FRC) has
issued draft plans to strengthen company reporting and ensure the
UK makes its voice heard in upcoming regulatory changes across
Europe.
The plans also include a draft budget
proposing a 2% increase of its total budget to £22million, due to
estimates that accountancy disciplinary case costs will increase
“significantly” over the next two years.
The organisation does however propose to
reduce core operating costs for accounting, auditing and corporate
governance by £0.7m and for actuarial standards and regulation by
£0.2m compared with the budget for 2010/11.
In the draft the FRC focuses on:
- Stronger and better-informed engagement between institutional
investors and company boards, - Corporate reporting and auditing that deliver greater value to
investors and better serve the public interest, - A strong UK voice in the EU and international debate on the
future regulation of corporate governance, reporting and auditing
and - A more effective UK regulatory framework that adds value for
investors and other stakeholders at low incremental cost.
FRC chairman Baroness Hogg said the FRC will
encourage more productive dialogue between investors and company
boards to help strengthen corporate reporting and auditing
frameworks to better serve the needs of investors and the public
interest.
“We must also continue to influence the
international policy and regulatory agenda. In 2011, the European
Commission will develop its proposals on the future of audit and
corporate governance and it is vital that the FRC is involved in
those debates to ensure that the UK voice is heard,” Hogg said.
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By GlobalDataThe FRC’s agenda addresses some of the issues
investigated by the House of Lords economics affairs committee
inquiry into audit market concentration.