Technical round-up - News - Review panel revises operating procedures

The Financial Reporting Review Panel (FRRP) has issued draft revised operating procedures taking into account its wider remit.

The procedures were last updated in October 2003 to allow the Panel to review accounts proactively. These latest revisions reflect the new powers and responsibilities given to the FRRP under provisions of the Companies (Audit, Investigations and Community Enterprise) Act 2004 which take effect from 6 April 2005.

In particular, the procedures set out the FRRP's responsibility to review reports issued under listing rules for compliance with the accounting requirements of those rules. Although the FRRP has no power to take action in relation to these reports, it can inform the Financial Services Authority of its findings. The procedures also explain the Panel's authority in relation to the operating and financial review (OFR). From April 2006 the FRRP will be reviewing OFRs for compliance with the Companies Act 1985. The procedures explain the limited circumstances in which the Panel may seek an order requiring directors to revise an OFR.

From 1 April the FRRP will also have the power to require companies and certain individuals to produce documents or to provide information that it may require for its monitoring function. However, the Panel hopes that companies will continue to volunteer information, without its powers having to be used.

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