FRC announces ‘major shakeup’ to oversight and supervisory functions

The Financial Reporting Council (FRC) has announced a “major shakeup” of its oversight and supervisory functions to “speed up the pace” of enforcement investigations.

The regulator said it is also “broadening its stated purpose” which is to serve the public interest by setting high standards of corporate governance and by holding to account those responsible for meeting them.

The strategy for 2020/21 will see the FRC make further progress in its transition to a new regulatory body proposed by last year’s independent review of the FRC.

To meet the requirements of the independent review, the FRC will recruit over 100 additional employees and streamline its decision-making processes. This will result in an increase in levies from £41.7m to £47.2m.

The consultation on the plan and budget will run until 28 February 2020.

Jonathan Thompson FRC CEO said: “The strategy builds a bolder, more forceful regulator that will act with pace in supervising and holding companies to account.

“Ahead of the FRC’s transition into the Audit, Reporting and Governance Authority (ARGA) I am determined we use our powers to the fullest, to respond to corporate governance challenges.”

He added: “The failure of a major company has significant impact, not just for investors, but for employees and communities.”

“The public has a major interest in the health of companies which is why we plan to serve that public interest by using our powers to the fullest within our existing regulatory scope.”

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