The UK regulator plans to ensure the countries codes and standards remain fit for purpose as one of its top priorities in the next two years.
The plan is part of the Financial Reporting Council’s (FRC) Draft Plan & Budget 2012/13, which is now open for consultation.
The FRC’s other proposed objectives include:
- Revising the wording in the Corporate Governance Code with regards to diversity and building on the Stewardship Code to further strengthen the quality of investor engagement;
- Providing clarification of the countries’ codes and standards in the EU and internationally;
- Continuing to work with the Department for Business particularly concerning the policies of the EU on governance and audit to serve the interests of investors;
- Introducing the new UK GAAP after the completion of final consultations, with a view to it coming into effect in 2015;
- Reinforcing the effectiveness of its monitoring, oversight and disciplinary work ensuring it is responsive to emerging risks, joined up, transparent and proportionate;
- Reviewing the scope of its work further and enhance the speed and effectiveness of its disciplinary work, as well as by reviewing sanctions; and,
- Continuing to review the risks associated with concentration in the UK audit market, including issues identified by the Competition Commission as a result of its current investigation into the market for statutory audit services.
The FRC said its budget for core operating costs for 2012/2013 will be £400,000 ($630,098) about 3% lower than anticipated due to government spending cuts in 2010. However, it does not expect this to be offset by an increase in the levy charged to publicly traded companies, insurance companies and pension schemes.
The deadline for comment on the consultation is 13 April 2012.