The Financial Reporting Council’s (FRC) interim chair Keith Skeoch, has expressed there is a “grave risk” that the slow pace in appointing board members to the new regulator, The Audit, Reporting and Governance Authority (ARGA) could result in delays to its formation.
The council recently published its annual report and accounts in which Skeoch shared his concerns that due to it being without a permanent chair since May 2020, it will “leave gaps” in the governance structure and may create delays in the board reform and its transformation process.
Skoech is currently in his tenth year as a director having had his term extended at the request of the Secretary of State in April 2021.
Despite his second extension ending in October 2021 and plans to appoint a new chair and more non-executives underway, he argued that “there is a grave risk, given recent experience, that these appointments will not be completed by the time myself and the other directors leave”.
The new watchdog is expected to hone greater authority, including additional legal powers whilst holding further companies accountable.
Commenting on the report, Sir Jon Thompson, CEO for the council said that the group will continue to build its “resilience, provide quality standards, supervision and support to stakeholders and the regulated community”.
He noted: “We also need to increase the pace of change to deliver on the package of reforms that the government has put forward in its White Paper.”