PracticeConsultingCompanies face Turnbull crackdown

Companies face Turnbull crackdown

The Financial Services Authority is expected to come down hard on companies not complying with the Turnbull recommendations on corporate governance.

With a majority of companies expected to have failed to adopt the guidelines in advance of the 31 December deadline, experts have warned that the FSA may take tougher action over the next twelve months.

They predict more corporate crashes will encourage the FSA to get tougher, while it has also been suggested that the financial watchdog may take a more active approach in its research on share values by publicising areas of good and poor compliance.

Martyn Jones, Deloitte & Touche technical partner, said: ‘The FSA wants companies to give clear disclosure. It will probably be taking a tougher line. Expect it to be biting towards the latter part of next year.’

A FSA spokesman said the regulator wanted to make sure shareholders had the information they need to make decisions, but added: ‘Rules are always kept under review.’

Steve Maslin, head of assurance services at Grant Thornton said: ‘A number of companies have taken their foot off the gas and have been slower than anticipated to imbed the controls needed. But, increasingly, capital markets and investors will be looking for robust statements on good corporate governance .’

Following a flurry of activity at the end of last year, accountants say companies’ interest in ensuring full compliance with Turnbull has waned.

Links

New guide to Turnbull

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