New probing powers likely for FRRP
New powers to shut stable doors before rogue companies bolt are under consideration for The Financial Reporting Review Panel.
Established in 1990 after a string of corporate failures, the FRRP currently investigates complaints and follows up media allegations against companies alleged to have misapplied accounting standards.
Under new proposals to be passed to ministers by the end of the year, it would take on new investigatory powers along the lines of the US Securities and Exchange Commission, which oversees the accounts of 15,000 listed companies.
With an increased budget and more staff, the FRRP would proactively examine some 3,000 UK company accounts to root out accounting mispractice. A group led by panel deputy chairman Ian Brindle will consider the reform proposals. The panel currently investigates an average of 30 to 40 companies a year resulting in about five restatements.