BDO has recently reviewed the UK Corporate Governance landscape following the Government announcing that it was withdrawing “burdensome legislation” regarding corporate governance reform. However, the FRC confirmed that proposed changes around internal controls will be included in their Code revisions.
Since the publishing of key reports, such as the Kingman, Brydon and CMA reports, there has been much debate and uncertainty for businesses potentially caught by this anticipated legislation, and this announcement adds an additional degree of complexity. With the Financial Reporting Council’s (FRC) ongoing consultation around its proposed changes to the UK Corporate Governance Code (the Code), there is much confusion around what businesses should do next.
However, the FRC’s confirmation on 7 November 2023 that proposed changes around internal controls will be included in their Code revisions provide some welcome certainty. BDO have distilled the implications of the announcement and highlighted suggested ‘no regrets’ next steps. This should be considered in the knowledge that the final outcomes of FRC’s Code consultation, the formal results of which are expected in Q4 2023, may alter our suggestions.
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