AIC responds to FRC revisions to Corporate Governance Code

The AIC has responded to today’s announcement from the FRC on revisions to the UK Corporate Governance Code.

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The Association of Investment Companies (AIC) has responded to today’s announcement from the Financial Reporting Council (FRC) on revisions to the UK Corporate Governance Code.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “A flexible, pragmatic approach to achieving proper governance standards is essential if UK markets are to maintain their attractions in an increasingly competitive global market for listings.

“This is a more balanced approach from the FRC than had originally been proposed. The FRC has taken on board concerns from the AIC and others that the original proposals were poorly targeted and disproportionate.

“The decision to uphold the well established principle of ‘comply or explain’ is welcome, and emphasises the importance of investors and agencies carefully evaluating companies’ explanations where they diverge from the Code. Many of our members are smaller companies, and this principle is particularly important for them.

“We will need to carefully consider the implications of the changes, in particular the new requirement for a statement on internal controls.”

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