Don’t let corporate governance turn into a box-ticking exercise January 16, 2020 Last week, some of the UK’s biggest businesses received a rap on the knuckles, as the Financial Reporting Council (FRC) published its annual review of how well companies lived up to the Corporate Governance Code. Some FTSE firms, the accounting and governance regulator argued, were simply “paying lip service to the spirit of the Code”, [...]
EY UK boss Steve Varley takes global sustainability role January 13, 2020 EY today announced the appointment of its UK and Ireland boss to a new position as global vice chair for sustainability. Steve Varley, who is chairman and managing partner of EY UK and Ireland, will relinquish the latter role when he takes up his new position on 1 July. Varley will continue to chair EY [...]
Fewer than half of City of London representatives sign diversity pledge January 12, 2020 Fewer than half of the City of London Corporation’s elected representatives have signed a pledge to increase diversity in the governing body. The Corporation’s voluntary Members’ Diversity Charter includes seven commitments to attract “a wider pool of talent” in order to “build a City built for the future”. Read more: City of London councillors call for associate guild to admit female members [...]
Watchdog calls for end to tick-box approach to corporate governance January 9, 2020 Audit watchdog the Financial Reporting Council (FRC) today said there was “significant room for improved corporate reporting” by FTSE companies. After an examination of corporate reporting last year against the 2016 UK corporate governance code and the 2018 code which has yet to take force but has been adopted by some companies, the watchdog found [...]
Sports Direct auditor RSM informs regulator and replaces management after internal accounting error January 5, 2020 The new auditor for retail chain Sports Direct has cleared out its top management team and informed the audit regulator after discovering an error in its own accounts. Challenger accountancy firm RSM scored a coup last year when it was appointed as auditor to FTSE 250 retailer Sports Direct (now Frasers Group). However, accounts for [...]
Watchdog extends Thomas Cook probe December 19, 2019 The UK’s accounting watchdog is extending its investigation into the collapse of travel operator Thomas Cook. The Financial Reporting Council (FRC) announced a probe into EY’s audit of Thomas Cook’s financial statements for the year ended 30 September 2018 following the company’s collapse earlier this year. Read more: Thomas Cook went bust with liabilities of [...]
Brydon review finds UK audit industry in need of ‘urgent reform’ December 18, 2019 The UK’s audit industry is in need of “urgent reform”, according to the findings of a year-long review into the sector. The review, which was led by Sir Donald Brydon, a former chair of the London Stock Exchange Group, calls for the creation of “a standalone and transparent audit profession” split off from the accounting [...]
CBI: UK manufacturers end 2019 under a cloud of worry December 17, 2019 The CBI has warned UK manufacturers are set to end the year on a low note. Manufacturing output volumes in the three months to December fell at the quickest rate since the financial crisis as output expanded in only six of 17 sub-sectors, CBI Industrial Trends data revealed today. The survey of 289 manufacturers showed [...]
Accounting watchdog ‘plots sweeping rule changes’ for company executives December 15, 2019 The Financial Reporting Council (FRC) is lining up significant changes to corporate governance rules after a string of scandals at Patisserie Valerie, M&C Saatchi and Ted Baker. It is understood the accounting regulator is writing a British version of an American law passed in 2002 after Worldcom and Enron collapsed. Read more: FRC watchdog probes [...]
M&C Saatchi board ‘blocked investigation’ into accounting crisis December 15, 2019 The board of M&C Saatchi has reportedly been accused of backtracking on its promise to hold an investigation into the firm’s £11.6m accounting crisis. The advertising stalwart was plunged into chaos last week when founder Lord Maurice Saatchi and three other directors resigned following a fierce row over the scandal. Read more: M&C Saatchi shares [...]