FRC restructuring points to more power
More independence from the institutes signals FRC's bid to control its own destiny
ACCOUNTING’s WATCHDOG wants more flexibility away from the professional institutes to make its own decisions over disciplining their members.
A joint consultation launched by the BIS and the Financial Reporting Council (FRC) looks to narrow the scope of the FRC’s disciplinary arrangements.
The FRC wants to handle cases that cover the quality of work and conduct of accountants in preparing and auditing reports for the capital markets, leaving other cases of potential misconduct to be dealt with by the institutes.
It wants the power to require the institutes to impose sanction on firms or auditors in respect of poor quality work, and to make its own disciplinary arrangements without needing to obtain permission from them.
As reported yesterday, the FRC also proposes replacing the council’s seven-board structure with two board committees – for codes and standards, and the other on conduct.
“A streamlined, unified FRC will help us to regulate less and carry out our role more effectively,” said FRC chairman baroness Hogg.
The consultation runs to 10 January 2012.