FRC Consults on Its Priorities and Funding for 2012/13

Kimberly Watson, Editor in Chief
March 05, 2012 /

The Financial Reporting Council (FRC) has published its draft priorities and funding proposals for 2012/13 in advance of its Annual Open Meeting which will be held on Tuesday, 20 March 2012.

The FRC will finalise its 2012/13 Plan and Levy Proposals at the end of April 2012, taking account of the responses to its consultation paper. Responses are requested by Friday, 13 April 2012.

Priorities

The paper “Draft Plan & Budget 2012/13” is on the FRC website.

In 2012/13, the FRC proposes to focus on the following objectives:

Making sure that the UK’s approach to corporate governance and reporting in terms of its codes and standards and oversight work is properly understood and appreciated in the EU and internationally. Working with the Department for Business, the FRC will in particular press for the policies of the EU on governance and audit to serve the interests of investors.

Building on the Stewardship Code to strengthen further the quality of investor engagement, and implementing changes to the wording of the Corporate Governance Code to reflect decisions on matters such as diversity that have already been announced.

Making sure that UK codes and standards remain fit for purpose in all areas and that planned changes are introduced at the right time. The FRC will aim in particular to introduce a new UK accounting framework (UK GAAP) after the completion of final consultations, with a view to it coming into effect in 2015.

Reinforcing the effectiveness of its monitoring, oversight and disciplinary work, ensuring it is responsive to emerging risks, joined up, transparent and proportionate. The FRC will review further the scope of its work and seek to enhance the speed and effectiveness of its disciplinary work, including by reviewing sanctions.

FRC Reform

The Government and FRC have consulted on proposals to reform its structure and powers. Details are available on the FRC website at http://www.frc.org.uk/about/frcreform.cfm. The finalised Plan for 2012/13 will reflect the outcome of the consultation.

During 2012/13, the FRC will ensure that the final decisions on reform are implemented effectively.

Funding

The FRC’s budget for core operating costs for 2012/13 is set to be £0.4m (2.5%) lower than anticipated expenditure in 2011/12. The FRC does not expect that the proposed budget will require an increase in the average levy which is charged to publicly traded companies, insurance companies and pension schemes.

Annual Open Meeting

The FRC’s Annual Open Meeting will be held at 4.00pm on Tuesday 20 March 2012 in the Council Chambers of the Institution of Engineering and Technology (IET), 2 Savoy Place, London WC2R 0BL. There will be an introduction by the Chairman, a report by the Chief Executive and the opportunity to ask questions.

 

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