The Financial Reporting Council (FRC) has published its priorities for 2010-11 and its funding proposals. The paper ‘Draft Plan and Levy Proposals 2010-11’ is on the FRC website and responses are requested by 10 March 2010.
FRC chairman, Sir Christopher Hogg, said: “The profound effects of the credit crunch have challenged everyone, including the FRC, to re-examine their priorities. The economic outlook may not be as depressed or unstable as it was when we published our plan for 2009/10, but there are clearly still major challenges for boards, audit committees, preparers, auditors, actuaries and accountants. Our draft plan invites views on the FRC’s response to these issues over the medium term.”
The key priorities for the FRC’s work in 2010-11 are to:
- Help boards, preparers, audit committees, auditors, actuaries, and investors to address the challenges associated with current conditions – and monitor their response to these challenges. For example, the FRC will, if appropriate, issue updated guidance to audit committees and directors, monitor and report on the quality of audits, and review a selection of annual and interim accounts and directors’ reports.
- Identify and respond to the longer-term lessons of the financial crisis. For example, the FRC will implement changes to the UK Corporate Governance Code, support the introduction of a stewardship code for institutional investors, and promote increased relevance and reduced complexity of corporate reporting.
- Influence, and respond to, a range of international initiatives in relation to corporate reporting and governance. This will include building the capability to represent the UK overseas.
- Enhance its own effectiveness and efficiency as a regulatory authority. In particular, building links with the investment community.
The FRC will finalise its 2010-11 Plan and Levy Proposals in May 2010, taking account of the responses to its consultation paper.