Public views on regulation of corporate reporting, audit and governance
Released 04 October 2019
Participants in a series of ‘citizens’ juries’ agreed that the Financial Reporting Council (FRC) should have more "power" and "teeth" to hold companies to account, but any increase in regulation should not stifle companies’ ability to operate and flourish.
The independent research, conducted on behalf of the FRC by BritainThinks, involved in-depth research with members of the public across the country.
As well as more power, participants thought the Regulator should hold individuals (other than those who are members of a professional body presently) and companies to account to deter wrongdoing. They also believed the Regulator and companies should operate in the public interest, taking into account the views of wider audiences, including employees, and improve diversity on boards.
The citizens also thought that the Regulator should maintain its independence from those it regulates at all costs. Participants felt it was particularly important to ensure the independence of non-executive directors and audit partners from the companies they work with.