l{"id":1294610,"date":"2023-11-07T13:35:58","date_gmt":"2023-11-07T13:35:58","guid":{"rendered":"https:\/\/www.businesstelegraph.co.uk\/frc-dilutes-long-awaited-uk-corporate-governance-reforms\/"},"modified":"2023-11-07T13:35:58","modified_gmt":"2023-11-07T13:35:58","slug":"frc-dilutes-long-awaited-uk-corporate-governance-reforms","status":"publish","type":"post","link":"https:\/\/www.businesstelegraph.co.uk\/frc-dilutes-long-awaited-uk-corporate-governance-reforms\/","title":{"rendered":"FRC dilutes long-awaited UK corporate governance reforms"},"content":{"rendered":"<p> <script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- newscabal uk text -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"3688094655\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Simply sign up to the <!-- -->UK financial regulation<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=c747992c-4e23-4afb-9037-4458001c440e&amp;concept-id=da459607-5dad-4189-bccf-a74189ec8155\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The UK accounting watchdog has dropped most of its proposed changes to the corporate governance code, in a move it says protects UK \u201ccompetitiveness\u201d.\u00a0<\/p>\n<p>The Financial Reporting Council\u2019s chief executive Richard Moriarty said on Tuesday he would abandon \u201cover half\u201d of the 18 changes the regulator had proposed in a consultation in May.<\/p>\n<p>He said the decision reflected the FRC\u2019s role in \u201csupporting UK economic growth and competitiveness\u201d. He added that the watchdog was \u201cconscious\u201d of a wider debate about business reporting requirements and burdens across the economy.\u00a0<\/p>\n<p>The changes to the FRC\u2019s plans are the latest in a series of delays and rowbacks in a years-long process to overhaul <a href=\"https:\/\/www.ft.com\/corporate-governance\" data-trackable=\"link\">corporate governance<\/a> rules following a series of high-profile corporate failures, including the collapse of government contractor Carillion, retailer BHS and caf\u00e9 chain Patisserie Valerie.\u00a0<\/p>\n<p>Moriarty said the FRC would drop proposals to give audit committees additional responsibilities relating to reporting on environmental, social and governance issues.<\/p>\n<p>It will also scrap changes to diversity reporting and proposals that would have required audit committee chairs to regularly engage with large shareholders.<\/p>\n<p>Michael Izza, chief executive of the ICAEW accountants\u2019 professional body, said: \u201cCarillion\u2019s collapse almost six years ago marked a watershed moment for UK audit and corporate governance, but it appears that the government\u2019s promise of comprehensive reform will remain unfulfilled due to a lack of political will.\u201d<\/p>\n<p>The FRC said some of the proposals were being dropped as a result of business secretary Kemi Badenoch\u2019s decision last month to <a href=\"https:\/\/www.ft.com\/content\/98ed368c-4240-419a-8038-0f69b0ea606c\" data-trackable=\"link\">shelve legislation<\/a> that would have tightened corporate governance rules for large companies. <\/p>\n<p>The government has depicted Badenoch\u2019s decision as part of a drive \u201cto reduce the burden of red tape\u201d. The move followed lobbying by the financial services industry over the cost of new corporate reporting rules. Such rules would have included a requirement for large companies to publish annual statements explaining how they ensure their resilience over the short, medium and long term.<\/p>\n<p>Ministers have also delayed separate, primary legislation to create a new, more powerful accounting and boardroom regulator by <a href=\"https:\/\/www.ft.com\/content\/57d2dfd5-92d1-4cb4-ac1e-9e0cd3c2aff4\" data-trackable=\"link\">omitting<\/a> it from the <a href=\"https:\/\/www.ft.com\/content\/95b9ccd3-d38b-4ea9-8fd8-42da60819cbc\" data-trackable=\"link\">King\u2019s Speech<\/a> on Tuesday, which laid out the government\u2019s legislative agenda for the next year.\u00a0<\/p>\n<p>The FRC said it would publish an updated version of the corporate governance code in January 2024.\u00a0<\/p>\n<p>The updated code would still include new requirements for companies to report on their internal controls but would be part of a \u201cmore targeted and proportionate\u201d package of reforms, the regulator said.\u00a0<\/p>\n<p>The FRC added that the implementation of the new rules on internal controls would be delayed and would ensure \u201cthe UK approach clearly differentiates from the much more intrusive approach adopted in the US\u201d.\u00a0The code applies only to companies with a premium listing on the London Stock Exchange and companies can ignore its requirements as long as they explain why.\u00a0<\/p>\n<p>Moriarty said respondents to the FRC\u2019s consultation had warned that guidance issued under the corporate governance code could have \u201cunintended effects\u201d on businesses and investors in the UK.\u00a0<\/p>\n<p>He added: \u201cThe FRC will continue to utilise its current regulatory toolkit to support UK businesses to thrive, balancing the FRC\u2019s public interest remit while promoting UK corporate growth and competitiveness in global capital markets.\u201d<\/p>\n<p>City minister Andrew Griffith said the FRC\u2019s changes were \u201cpragmatic and proportionate,\u201d adding: \u201cThe UK rightly enjoys a strong reputation for high governance standards but it\u2019s important that we don\u2019t burden our best and brightest companies to the extent that it\u2019s not a level playing field versus our international competitors.\u201d<\/p>\n<\/div>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"7859258044\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.ft.com\/content\/c747992c-4e23-4afb-9037-4458001c440e\">READ SOURCE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stay informed with free updates Simply sign up to the UK financial regulation myFT Digest &#8212; delivered directly to your inbox. The UK accounting watchdog has dropped most of its proposed changes to the corporate governance code, in a move it says protects UK \u201ccompetitiveness\u201d.\u00a0 The Financial Reporting Council\u2019s chief executive Richard Moriarty said on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_oct_exclude_from_cache":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1294610","post","type-post","status-publish","format-standard","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FRC dilutes long-awaited UK corporate governance reforms - Business Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ft.com\/content\/c747992c-4e23-4afb-9037-4458001c440e\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FRC dilutes long-awaited UK corporate governance reforms - Business Telegraph\" \/>\n<meta property=\"og:description\" content=\"Stay informed with free updates Simply sign up to the UK financial regulation myFT Digest &#8212; delivered directly to your inbox. The UK accounting watchdog has dropped most of its proposed changes to the corporate governance code, in a move it says protects UK \u201ccompetitiveness\u201d.\u00a0 The Financial Reporting Council\u2019s chief executive Richard Moriarty said on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ft.com\/content\/c747992c-4e23-4afb-9037-4458001c440e\" \/>\n<meta property=\"og:site_name\" content=\"Business Telegraph\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-07T13:35:58+00:00\" \/>\n<meta name=\"author\" content=\"businesstelegraph\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"businesstelegraph\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ft.com\/content\/c747992c-4e23-4afb-9037-4458001c440e#article\",\"isPartOf\":{\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/frc-dilutes-long-awaited-uk-corporate-governance-reforms\/\"},\"author\":{\"name\":\"businesstelegraph\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78\"},\"headline\":\"FRC dilutes long-awaited UK corporate governance reforms\",\"datePublished\":\"2023-11-07T13:35:58+00:00\",\"dateModified\":\"2023-11-07T13:35:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/frc-dilutes-long-awaited-uk-corporate-governance-reforms\/\"},\"wordCount\":627,\"publisher\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#organization\"},\"articleSection\":[\"finance\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/frc-dilutes-long-awaited-uk-corporate-governance-reforms\/\",\"url\":\"https:\/\/www.ft.com\/content\/c747992c-4e23-4afb-9037-4458001c440e\",\"name\":\"FRC dilutes long-awaited UK corporate governance reforms - 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