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FRC publishes three-year plan towards ARGA

The plan comprises a detailed breakdown of the FRC’s intended expenditure for 2022-23, alongside a summary of expected costs and headcount for the following two years.

The Financial Reporting Council (FRC) has published its three-year plan which sets out the FRC’s progress towards establishing the new Audit, Reporting and Governance Authority (ARGA).

The FRC’s plan follows the government’s 2021 consultation ‘Restoring Trust in Audit and Corporate Governance’, which moved the FRC closer to its aim of becoming ARGA. The council said that respondents to its consultation expressed continued support for the establishment of ARGA.

As the journey to ARGA continues, the plan considers how, and when, the FRC will need to increase its capacity to adapt to new powers and responsibilities. The plan comprises a detailed breakdown of the FRC’s intended expenditure for 2022-23, alongside a summary of expected costs and headcount for the following two years.

According to the FRC, to support the its plan and act in the public interest the FRC’s core objectives are to:

  • Set high standards in corporate governance and stewardship, corporate reporting, auditing and actuarial work, and assess the effectiveness of the application of those standards, enforcing them proportionately where it is in the public interest.
  • Promote improvements and innovation in the areas for which we are responsible, exploring good practice with a wide range of stakeholders.
  • Influence international standards and share best practice through membership of a range of global and regional bodies and incorporate appropriate standards into the UK regulatory framework
  • Promote a more resilient audit market through greater competition and choice.
  • Transform the organisation into a new robust, independent, and high-performing regulator, acting in the public interest.

Sir John Thompson, FRC CEO, said: “In the three years since Sir John Kingman’s review of the FRC, we have made significant progress implementing those recommendations within our power to ensure better outcomes for stakeholders who rely on high quality audit, reporting and corporate governance.

“As we continue to lay the groundwork for ARGA it is pleasing to see the continued level of support from our stakeholders for the FRC’s current plan.”

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