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 delivery.
Affected bodies have been brought back into government, devolved to local authorities or abolished altogether.
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.