The Financial Reporting Council (FRC) has
escaped the axe in the UK government’s review of public bodies
although it will no longer receive any government funding.
At present the FRC receives 5% of funding from
the Department for Business, Innovation and Skills while the rest
of its budget is funded by market participants.
The Cabinet Office has reviewed 481 public
sector bodies and made drastic changes to the operations of nearly
200 as part of a radical reform of government spending and service
Affected bodies have been brought back into
government, devolved to local authorities or abolished
FRC chief executive Stephen Haddrill believes
the funding cuts could help reinforce the FRC’s independence as a
regulator, adding that the body has been reducing its reliance on
public money over the past two years.
There may be additional independence and
transparency reforms for the FRC as the government prepares its
Public Bodies Bill, which will be released after the review.
The UK FRC is an independent regulator
responsible for promoting high quality corporate governance and
reporting to foster investment.