The Financial Reporting Council (FRC) is calling for more guidance regarding changes to the UK Corporate Governance Code.
Calls for changes to existing guidance come after the FRC’s Review of Corporate Governance Reporting, which was issued in November 2020.
New reports into the code are part of the FRC’s ongoing push to promote good practice and reporting among financial firms, offering support to companies to improve their reporting against the code.
The code recognises different firms have differing circumstances and offers flexibility via its “comply or explain” reporting approach.
The regulator has issued advice for companies on reporting transparently and effectively when moving on from certain code provisions.
The FRC is urging companies to embrace flexible reporting so stakeholders can benefit from reporting that encourages good governance.
Among the regulator’s requests are that companies adopt flexible reporting, make it easier for readers to find out why code provisions have departed in annual reports and ensure the provision of a clear explanation as to why said departures have been made.