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This week the Financial Reporting Council (FRC) published an updated version of its Regulatory Strategy. As well as providing insight into the FRC’s own governance, this document describes its Strategic Framework, and the Financial Management and Reporting Framework, the principles by which it expects companies to abide in the name of good corporate governance and financial reporting.
The Regulatory Strategy documents the FRC’s role and approach and is the basis on which it prepares its annual plan and budget. It has updated its Strategic Framework following a consultation exercise earlier this year. The Framework has the overall target of increasing public and market confidence in financial reporting and corporate governance – a UK version of Sarbanes-Oxley. The Regulatory Strategy has also been updated to reflect current developments, including the UK’s Companies Act of 2006. As well as the Strategic Framework, the FRC’s own governance, funding and accountability, organisation, statutory and consensus powers, costs and funding and performance reporting are included.
Sir Christopher Hogg, FRC Chair, said “The general thrust of our Regulatory Strategy remains unchanged, including our commitment to operate on a transparent and accountable basis. At the heart of our strategy is our Strategic Framework, which describes the outcomes which the FRC and market participants believe contribute to confidence in corporate reporting and governance.”
The FRC is the UK’s independent regulator responsible for corporate reporting and governance and operates through a number of operating bodies - the Committee on Corporate Governance, the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board.
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