Five key challenges facing the FRC

Five key challenges facing the FRC

Sir Bryan Nicholson launched the new-look FRC on Monday. Accountancy Age sets out his five key challenges below:

Link: FRC special report

1 ESTABLISH CREDIBILITY – Events like Monday’s launch, attended by 150 key City figures, can only be the start. Executives have been hitting the rubber-chicken circuit, as the FRC presents itself as a partner to business. But it will need to offer something tangible to secure favour. Sir Bryan’s promised review of the Turnbull guidance would go some way to achieving this.

2 SECURE AN EARLY TRIUMPH – No one wants a UK Enron. But for the FRC to be proved successful, it needs to have coped with a crisis, not just averted one. Something highly visible, but manageable, would do the trick.

3 MORE THAN THE SUM OF ITS PARTS – The FRC unites the ASB, the APB, the Professional Oversight Board for Accountancy, the FRRP and the Accountancy Investigation and Discipline Board. Most have existed in some guise before. The council has to demonstrate – by speed of inquiry and effectiveness of outcome – that these bodies can operate under one umbrella.

4 CONTROL COSTS WHILE RECRUITING THE RIGHT STAFF – Chief executive Paul Boyle is competing with firms, banks and businesses for the best talent. Boyle needs to sell the value of working for the council – asking him to compete on salary would be like expecting Charlton to outbid Chelsea for footballers. He cannot afford to underpay, but if FRC staff salaries rise too high, he can expect accusations of fat cattery.

5 BE EFFECTIVE INTERNATIONALLY – Sir Bryan acknowledges that one of the most significant aspects of his job is to work effectively with Brussels and Washington. He wants to lead without over-regulating, which would alienate domestic interest groups.

The ultimate flattery – and the benchmark of success – would be to see the FRC model exported abroad.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource