Proposals laid out by the Financial Reporting Council to reform major companies' accounts could spark even more financial turmoil and see the City revert to light-touch regulation, experts warn. The plans have raised the possibility that accounts of wholly-owned subsidiaries of major banks might not have to be audited, The Observer reports. The regulator has put it to the financial industry to debate whether subsidiaries should be required to file audited accounts with full disclosures. 'Is a more simplified reporting regime more appropriate? Would it be desirable to eliminate the UK requirement to prepare, have audited, and file wholly-owned subsidiary accounts in the case of a parent company guarantee?' it states. Tax expert Richard Murphy told The Observer: 'We have seen how subsidiaries have led parent companies into liquidation. HM Revenue & Customs and the public should have a right to get high quality audited information on every company. If this goes through, it will mean complex financial transactions will become harder to detect, so tax avoidance will increase.'