The government has confirmed it will introduce legislation to reform and streamline the Financial Reporting Council (FRC).
Subject to parliamentary approval, from 2 July, the powers currently invested in the FRC’s operating bodies will be devolved to the FRC board, except for those of the Financial Reporting Review Panel whose powers will move to the Conduct Committee.
The FRC can now condense the following seven operating bodies into just two - the Codes and Standards Committee and the Conduct Committee:
- Audit Inspection Unit (AIU)
- Professional Oversight Board (POB)
- Financial Reporting Review Panel (FRRP)
- Accountancy Actuarial Disciplinary Board (AADB)
- Auditing Practices Board (APB)
- Accounting Standard Board (ASB)
- Board for Acturial Standards (BAS)
Under the new structure Codes and Standards will pick up areas covered by the APB, ASB and the BAS, and will also derive support from three advisory councils that will advise on audit and assurance, accountancy and actuarial areas.