DTI report: FSA to aid regulation
The Financial Services Authority is to become a major player in the regulation of company reporting alongside the Financial Reporting Review Panel.
Link: Read the full report on Hewitt?s speech
The government wants the FSA to use its risk assessment expertise to help the FRRP identify danger areas in company accounting and as result aid the body to become much more proactive in its work.
Speaking today on the Final Report of the Co-ordinating Group on Audit and Accounting Issue, trade secretary Patricia Hewitt backed the involvement of the FSA and the move to more ‘proactive’ investigation by the FRRP.
Up to now the FRRP has been entirely reactive relying on formal complaints and sometimes reports in the press.
In a surprise move the report asks the government to explore developing a legal method that would allow the Inland Revenue to supply information to the FSA and FRRP on company accounts.
It is understood the government was more than happy with the quality of the work undertaken but wanted more of it and more initiative from the panel.
There are no recommendations for the FRRP to disappear and the FSA to take over the role in its entirety.