Reforms set to cut back chaotic audit regulator October 17, 2011 INCOHERENT growth of the Financial Reporting Council (FRC) has created an inefficient shambles, its chief executive told City A.M. yesterday. “Following scandals like Enron and Equitable Life, the FRC’s responsibilities grew from accounting standards originally to cover areas like corporate governance, professional oversight, and actuarial work,” Stephen Heddrill told City A.M. “However, the whole body [...]
WHAT THE OTHER PAPERS SAY THIS MORNING September 4, 2011 FINANCIAL TIMES BERLIN PREPARES TO TAKE EADS STAKE The German government is preparing to take a stake in European aerospace company EADS after no buyers for part of Daimler’s holding came forward. Berlin has been seeking buyers for the 7.5 per cent stake – a third of the holding controlled by the carmaker – since [...]
FRC changes audit rules September 1, 2011 COMPANIES will have to put their contract for a new auditor out to tender once every decade or explain why they have not, under new proposed corporate reporting rules published yesterday. But the Financial Reporting Council scrapped plans to stop companies printing hard copies of annual reports as part of the overhaul, after opposition from [...]
Audits still fail to challenge firms, FRC says July 18, 2011 AUDITORS of major UK companies are still failing to challenge the information given to them with sufficient scepticism, a new report today shows. Less than half the audits reviewed by the Financial Reporting Council in the past year were rated good, while 13.5 per cent required significant improvement. The FRC’s Audit Inspection Unit (AIU) also [...]
UK to probe bank covenants favouring big auditors March 23, 2011 The government has asked regulators to investigate whether banks help to entrench the “Big Four” auditing firms’ dominance through restrictive lending agreements with companies. Chancellor George Osborne’s Budget included a call to the Office of Fair Trading to probe whether bank covenants lock out smaller auditors. The Financial Reporting Council had expressed concern to lawmakers [...]
Shareholder rights are still being ignored March 9, 2011 DEFENDING shareholder rights remains an “uphill struggle” despite almost 150 asset owners signing up to a series of guidelines for best corporate governance behaviour, a key City regulator will say today. Almost 150 asset owners have signed up to the Stewardship Code launched by the Financial Reporting Council (FRC) last July to push institutional investors [...]
Greater disclosure of risk needed, says governance body January 6, 2011 DIRECTORS should be clearer about the risks facing their business in annual reports, the UK’s governance watchdog said today. Statements from chairmen and chief executives should be balanced and discuss the biggest risks to the business in more detail, according to new recommendations from the Financial Reporting Council (FRC). Audit committee reports should also disclose [...]
FSA to keep its financial crime powers November 17, 2010 GEORGE Osborne has performed a U-turn over a landmark policy, which would have seen the FSA stripped of its power to prosecute financial crime and its oversight of companies listing on the stock exchange. The chancellor had previously said he would give the FSA’s prosecution powers to a new Economic Crime Agency (ECA), which is [...]
UKLA endorsed by City as consultation winds up October 18, 2010 THE UK Listing Authority (UKLA) received backing from the City yesterday, just as the government consultation on its future closed. The Listing Authority Advisory Committee (LAAC), the body which represents the investment community in its dealings with the UKLA, said overall satisfaction with the authority had risen to 72 per cent compared to 69 per [...]
Big Four set to face the Lords October 17, 2010 THE HEADS of the Big Four auditors are likely to face an influential House of Lords committee next month, in a probe into the lack of competition in the audit market and the role the firms played in the financial crisis. Watchdogs including the Financial Services Council (FRC) have submitted papers to the Lords’ Economic [...]