THE FRC is to refrain from introducing further codes and standards between now and 2019, and instead focus on “bedding in” and fully implementing existing changes to the code.
Addressing FRC stakeholders at the regulator’s annual priorities meeting, chief executive Stephen Hadrill (pictured) said it was important to ensure changes introduced to the body’s codes and standards functioned correctly before any further change takes place.
He said: “We have since the financial crisis introduced quite a considerable number of changes to our codes and our standards – particularly the corporate governance code – and we think now that the task for us is to embed that change rather than introduce more.”
On budgetary issues, Hadrill noted the regulator’s budget would remain the same at around £33.5m – subject to finalisation at the annual board meeting in April.
However, Haddrill added “audit profession will pay for its regulation” through increased levies as the government no longer contributes to the watchdog’s funding, while new EU audit legislation requires the FRC’s work in audit to be securely funded.
In an accompanying Priorities document, the FRC noted its audit work is partly funded on a voluntary basis by the corporate and other funding groups.
It added: “We believe that this is inappropriate under the new legislation and are rebalancing the costs of audit regulation so that they are met only by the audit profession. Our intention is to phase this in.”