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.”

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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.”