I read your interview with Prem Sikka (Issue 6131) with interest. His comments about the Financial Reporting Council (FRC) and its constitution require some clarification.
The FRC is a private company but its range of responsibilities comes from a variety of sources including responsibilities delegated to it by statute. We are committed to exercising those responsibilities in the public interest.
The FRC’s constitution, responsibilities and funding were reviewed by the Government in 2012 to ensure that it remains appropriate for the FRC to exercise its suite of responsibilities.
We are accountable to the Secretary of State and report to him annually. That report is tabled in Parliament. We consult annually on our priorities and our budget as well as on a wide range of our specific activities. We are regularly asked to give evidence to Select Committees.
We clearly have a duty of care to all our stakeholders. Chief among them are investors in UK listed companies and British businesses which benefit from that investment.
Peter TimberlakeHead of Communications, Financial Reporting Council, London