FRC to continually review combined code

Link: Toughened FRC needs substantial budget to work

Although details of the move are still under consideration, it is thought that such a group is needed to avoid the upheaval created by large-scale changes, such as those recommended in the Higgs report.

The implementation of such a group could avoid a similar situation occurring in a few years’ time.

‘There is clearly a need for some mechanism of constant review of the code,’ said Peter Wyman, member of the steering group for the new FRC.

‘To rely on it to emerge successfully without help is not good enough.’

Wyman added that the council was not designed to deal with monitoring on a regular basis, except for major issues, and that it was felt a standing group would be needed to keep the code under review.

It is unclear whether the standing group would be an official sub-group of any board at the FRC or completely separate, but it is likely to involve just a small number of members.

‘Derek (Higgs) has just reviewed the whole thing so there is no rush to do something immediately,’ said Wyman. ‘What we don’t want is to get two or three years down the line and have nothing in place.’

The final draft of the combined code on corporate governance was approved at a council meeting last month after months of controversy over its wording.

Email: FINANCIAL REPORTING COUNCIL UPDATE – Accountancy Age revealed last week that the accounts of hundreds of public companies will be called in each year for review by the council’s newly empowered Financial Reporting Review Panel. – ICAS has still to sign up to the council’s investigation and discipline board leaving its members the only ones currently outside the new disciplinary arrangements.

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