Higgs: Draft code was too harsh
Derek Higgs has backed down from his hard-line model for corporate governance, and admitted it needs redrafting.
Speaking at the Association of Chartered Certified Accountants conference, Higgs said his ‘code draft had too much of a feel of regulation, prescription and needs redrafting’.
Higgs explained the code had been a rush-job at the end of a review project, which did no justice to the quality of the review itself. As a result, he said, the code came across as a hard-edged, the Daily Telegraph reported.
The Financial Reporting Council has drawn up a revised text of Higgs’ model code. The FRC text is aimed to be less descriptive and is awaiting approval of the FRC board meeting next month.