We welcomed the New Board Effectiveness Guidance from the Financial Reporting Council that came out last year. And we’re reading the Independent review of the Financial Reporting Council (FRC) with interest.
It contains far reaching recommendations, saying it is time to replace the FRC with a new body, called the Audit, Reporting and Governance Authority. The Review is well balanced; acknowledging that the FRC was “built on weak foundations”, “patched and mended by its inhabitants” but stating it is “time to build a new house”. The new Authority must have a “clear and precise sense of purpose and mission.”
We’ll keep a close eye on this – and welcome the focus on clarity of purpose and mission – and would like to propose that any new body is also built on a solid set of values.