On 18 March 2009, the Financial Reporting Council announced that it was undertaking a review of the effectiveness of the Combined Code on Corporate Governance.

In announcing its review, the FRC notes that since the impact and implementation of the Combined Code was last reviewed in 2007 there has been a significant change in the economic conditions under which companies (and in particular those in the financial sector) are operating.

While there is no assumption that the Combined Code is fundamentally flawed or that a different regulatory framework for corporate governance could have prevented some of the current problems, the FRC states that it is appropriate that the review should look at all aspects of the content and application of the Code, and the use made of "comply or explain", to ensure that it remains effective.

The FRC has indicated that it will work closely with Sir David Walker who is currently chairing a review of corporate governance in the UK banking industry at the request of HM Treasury.

Any comments or views should be submitted by 29 May 2009. The FRC intends to publish its findings later in 2009.

View FRC review paper (6 page pdf)