The Financial Reporting Council (FRC) has launched a new consultation on its draft proposals for how the new regulator, the Audit, reporting and Governance Authority (ARGA), should be funded.
It follows the Government’s response to its consultation on ‘Restoring Trust in Audit and Corporate Governance’, which set out its intention to give ARGA statutory powers to raise a levy so that it has a sustainable and independent basis on which to carry out its regulatory activities.
According to the FRC, ARGA will “play a key role” in protecting and promoting the interests of investors, other users of corporate reporting and the wider public interest.
The FRC is now seeking the views of its stakeholders on the overall approach to ARGA’s funding, the proposed funding model, and the groups that should fund each of its regulatory activities.
It added this would ensure ARGA can fulfil its aims and that the right people and organisations are levied proportionately.
Following this consultation, and subject to the Government’s legislative plans, the FRC expects to consult further on detailed aspects of the proposed arrangements, to be contained in a Rule Book
The consultation will run until Friday, 21 October.