FRC makes the right call on revisions to the UK corporate governance code
The Association of Investment Companies (AIC) has responded to the Financial Reporting Council’s policy update on its revisions to the UK Corporate Governance Code.
The Association of Investment Companies (AIC) has responded to the Financial Reporting Council’s policy update on its revisions to the UK Corporate Governance Code.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “The Financial Reporting Council’s original proposals were disproportionate and poorly targeted. The FRC has listened to the concerns of business and, while we do not have all the detail, seems to have changed tack accordingly. This is a very positive development but must not be the last word from policymakers on getting the balance of regulation right.
“Serious misgivings remain about the government’s proposals to require larger listed companies to adopt managed shared audits, or to compel them to appoint challenger audit firms. If adopted, these rules would restrict choice in a market which is already subject to low levels of competition and increasing prices. The government must take steps to withdraw or significantly modify these measures to prevent overly burdensome regulation being imposed on UK business, particularly as they will not have the desired effect of increasing competition in the audit market or enhance the quality of audit services.”
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