Independent review of the Financial Reporting Council

By ICAS Policy Leadership

20 April 2018

The Secretary of State for the Department for Business, Energy, and Industrial Strategy (BEIS) has invited Sir John Kingman to conduct a review of the FRC.

The review will aim to submit its findings to the Secretary of State for Business, Energy and Industrial Strategy and the FRC Board by the end of 2018. The review process will include a public consultation. The final report will be published, and the government will consult on its response to the review’s recommendations.

Review Objectives

  • Put the FRC in a position to stand as a beacon for the best in governance, transparency and independence; strengthening its position and reputation.
  • Ensure that its structures, culture and processes; oversight, accountability, and powers; and its impact, resources, and capacity are fit for the future.

Scope

The review’s scope will include the FRC's governance and transparency; the avoidance of conflicts of interest, as well as its independence, oversight and accountability; and, its impact, resources and capacity.

The government’s expectation is to see the UK at the forefront of corporate governance internationally, including in terms of regulation. With reforms to the UK’s Corporate Governance Code in hand, the government believes it is also appropriate to make sure that the governance of the FRC as the body with responsibility for the Code, is best in class.

Governance

Sir John Kingman will be supported by an Advisory Group that will advise on the direction of the review and sources of evidence and will help to scrutinise and challenge emerging findings and recommendations.

Advisory Group discussions will be held under Chatham House principles to enable free and frank scrutiny of the issues. A summary meeting note will be produced and made available if requested.

Stakeholder Engagement

The review will undertake engagement with significant stakeholder groups, including those involved in preparing financial accounts, the users of accounts and those affected by other aspects of the FRC’s work, including governance and stewardship, in order fully to understand the range of issues and provide constructive challenge.

Topics

  • Audit and Assurance
  • Committees and boards

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