The Financial Reporting Council (FRC) has welcomed its own demise, as the UK Government announced long overdue legislation to modernise its powers and strengthen the transparency and integrity of the UK’s corporate governance, financial reporting, and audit.
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), and was one of the first points in the King’s Speech today
FRC CEO Richard Moriarty said: “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.”
ICAEW CEO, Alan Vallance agreed:“More than six years on from the collapse of Carillion, we are delighted that the new government has named legislation to reform corporate governance and audit as one of its priorities for the next parliament.”
Among the other changes unveils in the King’s Speech were:
A reform of the apprenticeship levy.
Creation of Skills England, bring together government, businesses =union and training providers. At its heart will be a partnership with employers.
Measures will also be brought forward to remove the exemption from VAT for private school fees. The idea is that the monies raised will fund 6,500 teachers.
