Government to drop FRC funding
Watchdog to be funded by industry and firms
The UK’s accounting regulator is to lose its government funding and is to
rely on companies and accounting firms for its finances.
The Department for Business, Enterprise and Regulatory Reform today announced
it would like to see new funding arrangements in place for the independent
Financial Reporting Council.
The FRC is now set to move to private sector funding, in line with funding
arrangements of other regulators including the pensions regulator and the
Financial Services Authority.
Secretary of state for trade and consumer affairs, Gareth Thomas, said
government concluded that the FRC should be funded largely by market
participants since it is a market-led regulator.
‘Corporate reporting and governance in the UK are widely recognised
domestically and internationally as being of a very high standard generally.
‘The FRC’s integrated and market-led approach to regulation underpins these
standards. This approach continues to receive strong support from companies,
investors, the accountancy profession and other stakeholders,’ he said.
The regulator is expected to consult market participants on the options for
new funding arrangements.
Government will continue supporting the organisation until the 2008/9
financial year so as to allow an orderly transition to stable, new, long-term
funding arrangements