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Financial Reporting Council set for change following EU vote

The Financial Reporting Council (FRC) has said that its role as watchdog has been slightly altered, and has even suggested that Brexit has put its future in doubt.

In the FRC’s 2015/16 annual report, it was revealed that the regulator’s new role will emphasise strengthening auditor quality and investor confidence.

FRC chairman Sir Win Bischoff said that, after the watchdog was given increased powers as a result of the new EU-wide audit regulation rules, its aim is to have a minimum of 90% of FTSE 360 audits to require only limited improvements by 2020.

The FRC said that while its framework for regulations has been unaffected by Brexit, it does not rule out the possibility changes down the line as a result of the vote.

Bischoff said:

“We will consequentially pay close attention to the decision now taken by government and parliament, and continue to work in collaboration with our key stakeholders, particularly investors, business and the professionals we regulate, in order to ensure our work continues to support economic growth and the effective functioning of the capital markets.”

Among the actions determined for 2016/17, the FRC will be working harder to ensure companies are aware of how a clear-cut corporate culture can support sustainable growth in the long term.

Whether changes are afoot or not, business in the UK should always ensure that their accounting practices, and more importantly their actual accounts, are up-to-date. An accountant in the Wirral can ensure that this is the case during these uncertain times.

Posted by Mark
July 27, 2016
FRC

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