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The Institute of Chartered Accountants of Scotland (ICAS) has warned that there is “no excuse” for further delay in bringing forward the draft Audit and Corporate Reform legislation that aims to boost investor confidence.
It comes as the House of Commons Business and Trade Select Committee (BTC) is set to examine the future role of UK regulators, and whether they can deliver on the government’s plans to “regulate for growth”.
The BTC will take oral evidence from key regulators, as well as from Justin Madders MP, Minister for Employment Rights, Competition and Markets at the Department for Business and Trade, and Lord Willetts, chair of the Regulatory Innovation Office.
It will ask whether regulators can “get the balance right between protecting the public, the environment, enforcing fair markets and now, driving economic growth”.
ICAS noted the future of regulation in the UK and how it can fulfil the often-conflicting goals are questions it has been asking “for some time”.
In light of this, Bruce Cartwright CA, CEO of ICAS, welcomed the Select Committee session.
Cartwright said: “We’ve long been calling for a wider discussion about proportionate, purposeful, and hopefully better regulation. The UK must urgently do three things; grow, by being attractive to investors, protect the environment in its widest sense and better protect the public interest.”
He added that ICAS is “concerned” that a year on from the King’s speech, “another government is dragging its heels when it comes to making sure the UK has the most suitable governance and regulation, able to achieve such a complex collection of roles and responsibilities”.
He said: “There is no excuse for further delay. The case for bringing forward the draft Audit and Corporate Reform legislation promised in the King’s speech last year has already been made by the previous and current government, opposition parties, business and the accountancy profession, but we’re still no further forward.
“Corporate failure can’t be prevented, but mechanisms can be put in place to make sure that the highest standards of governance and accountability are followed. This increases transparency, so when things do go wrong, contingency planning is improved and the opportunity to learn valuable lessons are increased. This can only increase investor confidence that the UK is a responsible place to do business.”
