Parliament approves plans to reform FRC

The House of Commons and House of Lords yesterday gave their parliamentary approval to plans for reform, proposed by the accounting regulator.

The Financial Reporting Council’s plans will enable it to operate as a unified regulatory body, with enhanced independence from those it seeks to regulate and with more proportionate sanctions.

As of 2 July, the strategic direction of the key decisions on standards, and how the organisation will discharge its responsibilities, will be undertaken by the FRC board.

The Board will be supported by the Codes and Standards Committee (CSC), a Conduct Committee (CC), and an Executive Committee.

In relation to codes, standard setting and policy questions the FRC will be advised by three councils responsible for Accounting, Actuarial and Audit & Assurance matters.

FRC chair Baroness Hogg, said: ‘We are pleased that we can now proceed on the basis of our reformed powers. The reforms will further enable the FRC to use its wide ranging expertise to strengthen the UK voice in international debates on corporate governance and reporting.

‘As we’ve made clear throughout the consultation process, these reforms have represented the close and productive dialogue with a wide range of stakeholders to support our core mission of promoting high quality corporate governance and reporting in the UK to help foster investment.’

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