The Government has withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements. Welcomed by financial sector.
- Government withdraws draft new reporting regulations following a consultation with businesses on wider reporting regime.
- New reform package will deliver a more targeted, simpler and effective framework for both business and investors.
- Announcement welcomed by leading industry voices including the London Stock Exchange, Capital Markets Industry Taskforce, UK Finance, Lloyds and CityUK.
- Changes will ensure the UK remains one of the best places in the world for firms to list and to do business.
The Government has today [16 October] withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements.
Instead, the Government will pursue options to reduce the burden of red tape to ensure the UK is one of the best places in the world to do business.
Draft regulations published in July would have added certain additional corporate and company reporting requirements to large UK listed and private companies, including an annual resilience statement, distributable profits figure, material fraud statement and triennial audit and assurance policy statement.
This would have incurred additional costs for companies by requiring them to include additional layers of corporate information in their annual reports.
Since July, the Government has completed a call for evidence on existing non-financial reporting requirements, which has identified a strong appetite from businesses and investors for reform, including to simplify and streamline existing reporting.
The Business Secretary has now decided to withdraw these regulations, and will be setting out options to reform the wider framework shortly to reduce the burden of red tape on businesses.
The Government remains committed to wider audit and corporate governance reform, including establishing a new Audit, Reporting and Governance Authority to replace the existing Financial Reporting Council. We will bring forward legislation to deliver these reforms when Parliamentary time allows.
Business Minister Kevin Hollinrake said:
Since the Government first published these draft regulations in July, discussions with businesses and stakeholders have highlighted a strong appetite for existing reporting requirements to be simplified.
Dept. for Business
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