The Financial Reporting Council (FRC) has said that it welcomes the Government’s announcement of draft legislation in the new parliamentary session to modernise its powers and strengthen the transparency and integrity of the UK’s corporate governance, financial reporting and audit.
In His Majesty the King’s speech to Parliament setting out the Government’s agenda for its first session, new legislation was announced to strengthen audit and corporate governance to provide investors, employees and consumers with greater confidence in the health of UK companies.
The Draft Audit Reform and Corporate Governance Bill will put the FRC on a statutory footing through the establishment of the Audit, Reporting and Governance Authority (ARGA), building on the FRC’s transformation in recent years into a more robust and effective regulator and its remit to support the UK’s economic growth and international competitiveness.
Commenting on this, FRC CEO, Richard Moriarty, said: “The FRC welcomes the Government’s announcement of draft legislation to modernise its regulatory toolkit.
“The FRC has transformed in recent years into a more robust and effective regulator. But despite this progress, there are serious gaps in the regulatory toolkit that have long been identified as being in need of reform so we can act fully in the public interest and support growth and the ability of companies to attract the capital they need. Without these changes we are the regulatory equivalent of being a sheriff for only half the county and with weaker powers than are needed.
“This positive direction of travel recognises our important role in supporting the UK’s reputation for good corporate governance, financial reporting, and audit. Our work underpins domestic and international investor confidence, resulting in businesses being more readily able to access the capital they need to grow and create jobs and wealth in every community across the UK.
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By GlobalData“We will work with the Department of Business and Trade as it brings forward this draft legislation while continuing to use our existing powers to deliver good standards of corporate governance, financial reporting and audit and fulfilling our remit to support growth across the UK.”
