02 March 2012

FRC's draft priorities and funding for 2012/13

In 2012/13, the FRC proposes to focus on the following objectives:

• Making sure that the UK’s approach to corporate governance and reporting in terms of its codes and standards and oversight work is properly understood and appreciated in the EU and internationally. Working with the Department for Business, the FRC will in particular press for the policies of the EU on governance and audit to serve the interests of investors.
• Building on the Stewardship Code to strengthen further the quality of investor engagement, and implementing changes to the wording of the Corporate Governance Code to reflect decisions on matters such as diversity that have already been announced.
• Making sure that UK codes and standards remain fit for purpose in all areas and that planned changes are introduced at the right time. The FRC will aim in particular to introduce a new UK accounting framework (UK GAAP) after the completion of final consultations, with a view to it coming into effect in 2015.
• Reinforcing the effectiveness of its monitoring, oversight and disciplinary work, ensuring it is responsive to emerging risks, joined up, transparent and proportionate. The FRC will review further the scope of its work and seek to enhance the speed and effectiveness of its disciplinary work, including by reviewing sanctions.

The FRC’s budget for core operating costs for 2012/13 is set to be £0.4 million (2.5 per cent) lower than anticipated expenditure in 2011/12. The FRC does not expect that the proposed budget will require an increase in the average levy which is charged to publicly-traded companies, insurance companies and pension schemes.

Press release

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