The consultation paper includes a number of recommendations that could be taken forward through amendments to the Combined Code on Corporate Governance, which is separately being reviewed by the FRC. It also recommends extending the responsibilities of the FRC and the FSA in relation to engagement between company boards and investors.

 

Welcoming the consultation paper Sir Christopher Hogg, Chairman of the FRC, said:

 

“We welcome Sir David’s endorsement of the Combined Code and the flexibility provided by ‘comply or explain’. The FRC shares his objective of improving its effectiveness through better engagement, and is willing to consider taking on an enhanced role in that regard. We look forward to discussing the implications of these proposals with Sir David, the FSA, investors and other interested parties to identify how the FRC can best help.”

 

The FRC will issue a progress report on its own review of the impact and effectiveness of the Combined Code before the end of the July, with a final report before the end of the year. Any proposed changes to the Combined Code will be subject to a separate consultation.