FRC's Future Role Under Consultation
The Department for Business, Innovation and Skills (BIS) and the Financial Reporting Council (FRC) are launching a consultation proposing the refocusing and streamlining of the FRC. The aim of the reforms is to create an FRC that is clearer about its role and purpose, proportionate in the execution of that purpose and in a strong position to promote the highest standards of corporate reporting, governance and auditing.
Stakeholders have been invited to comment on whether the scope of the FRC’s regulatory activities should be narrowed to focus on areas of greatest concern to the operation of the capital markets and, in particular, on the following proposals:
The consultation also proposes reinforcing the FRC’s independence by providing it with:
The consultation also proposes replacing the FRC’s existing seven operating bodies with two board committees – one focusing on codes and standards, the other on conduct.
Responses to the consultation are invited by 10 January 2012. The intention is to implement the changes, guided by the responses to the consultation, in April 2012.