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 [...]
City unites against UK listing proposal October 14, 2010 THE City has roundly rejected the government’s proposal to merge the UK Listing Authority (UKLA) with the Financial Reporting Council (FRC) saying such a move would serve to fragment the regulation of the investment market and hurt investors and issuers. The proposal to merge the UKLA was put forward as part of the government’s consultation [...]
Second probe into E&Y over Lehman Brothers collapse October 4, 2010 THE accounting watchdog yesterday opened a second investigation into auditor Ernst & Young (E&Y) over its auditing of failed US investment bank Lehman Brothers. The probe will examine what E&Y told UK regulators about how Lehman Brothers was complying with client asset protection rules. “The Accountancy and Actuarial Discipline Board (AADB) has begun an investigation [...]
IoD slates regulation plan September 28, 2010 THE Institute of Directors (IoD) yesterday became the latest organisation to join the London Stock Exchange (LSE) in opposing the merger of the Financial Reporting Council and the UK Listing Authority (UKLA). In a statement, Miles Templeman, director-general of the IoD, said it made no “sense to leave the UKLA separate from the body [the [...]