The new structure of the Financial Reporting Council

The Financial Reporting Council (‘FRC’) has been restructured with effect from 2 July 2012. The aim is to enable the FRC to act as a unified regulatory body with a more proportionate range of sanctions and increased independence from those it regulates. The Board of the FRC will be responsible for the strategic direction of key decisions on standards, as well as for deciding how the FRC will discharge its responsibilities. The Board will be supported in its work by three Committees: a Codes and Standards Committee, a Conduct Committee and an Executive Committee. The FRC will, in relation to codes, standard setting and policy questions, be advised by three Councils which will deal with accounting, actuarial and audit, and assurance issues respectively. The role formerly undertaken by the Financial Reporting Review Panel will continue to be carried out by a Panel of the same name and comprised of members appointed by the Conduct Committee of the FRC.  

FRC press release available at:

http://www.frc.org.uk/News-and-Events/FRC-Press/Press/2012/June/Reform-of-the-Financial-Reporting-Council-approved.aspx

Auditors

The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc.) Order 2012, in force on 2 July 2012, gives the FRC new powers to ensure that professional bodies responsible for supervising statutory auditors properly discharge their supervisory functions.  

The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc.) Order 2012 available at:

http://www.legislation.gov.uk/uksi/2012/1741/contents/made

Disciplinary schemes for accountants and actuaries

On 28 June 2012, the FRC launched a consultation on proposed changes to its disciplinary schemes for accountants and actuaries. Responses to the consultation are requested by 15 September 2012.

FRC consultation paper: Disciplinary Schemes – Proposed Changes available at:

http://www.frc.org.uk/getattachment/b03e2da0-1d5e-47ca-acbd-60d591f9ca0b/Disciplinary-schemes-proposed-changes-a-consultation-paper-(June-2012).aspx