The UK government has given the go ahead to
the Financial Reporting Council (FRC) to reform its structure,
following the output of a joint consultation.  

The reform aims to simplify the regulator’s
structure by consolidating its operating subsidiaries from seven
down to two.

FRC chair Baroness Hogg said the
regulator’s structure was “over-complicated” and the reform will
enable it to mobilise its expertise to strengthen the UK’s voice
internationally.

UK Business Minister Norman Lamb said by
tightening FRC focus and streamlining its governance and structure,
the regulator would become more effective.

“The FRC will continue this dialogue with
stakeholders as the changes are implemented,” Lamb said.

  • Proposed reforms, which are part of a wider
    UK regulatory framework, include:
  • Delegating most statutory powers to the FRC board not the
    operating bodies;
  • Providing the FRC board with powers to determine and require
    recognised supervisory bodies (RSBs) to impose sanctions for poor
    quality audit
  • Providing the FRC board with powers to impose directions and
    financial penalties on the RSBs and recognised qualifying bodies
    for shortcomings in discharging their regulatory responsibilities
    in relation to the quality of auditing in the UK; and,
  • Enabling the FRC to conclude disciplinary cases without a
    public hearing where all involved agree.

The UK regulatory body also made a series of
senior appointments to comply with the part of the reform that does
not need law changes, such as the grouping of activities around
codes and standards, and conduct.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Jim Sutcliffe has been appointed as chairman
of the new Codes and Standards Committee, which will include the
areas covered by the board’s corporate governance committee such as
the Accounting Standards Board, the Auditing Practices Board and
the Board for Actuarial Standards.

Richard Fleck has been appointed chair of the
Conduct Committee, which will encompass the areas covered by the
Financial Reporting Review Panel, the Professional Oversight Board,
the Audit Inspection Unit and the Accounting and Actuarial
Disciplinary Board.