Reforming the UK's corporate governance, audit and reporting regime

On 31 May 2022, the Government (BEIS) published its Response Statement (the Statement) following its consultation on reforms aimed at 'Restoring trust in audit and corporate governance'. The Statement summarises the themes from the responses received, and outlines the proposals BEIS intends to take forward. Available below is our summary of the Statement. In this we cover the key headlines and provide a summary of the main proposals. Also below is a document containing a number of FAQs that have been raised on the key proposals. In responding to these FAQs, we've examined the proposals in detail in order to help companies understand how they will most likely be implemented and how companies, directors and audit committees could be impacted.

There are a number of the proposed reforms that the FRC will take forward. These include the strengthening of internal controls responsibilities, which will be implemented through changes to the UK Corporate Governance Code (the Code). The FRC has issued a consultation on these changes, which can be found here. Below is our summary of the key aspects of these proposed changes.

Summary of the BEIS response statement

FAQs on the BEIS response statement

Summary of the FRC consultation on the Code

Hemione Hudson

“It’s good to see progress on a package of legislative reforms to improve standards for audit, reporting and corporate governance. The Government’s response to the consultation acknowledges that all parts of the corporate governance ecosystem have a part to play in reform and outlines a suite of measures covering the whole market. We’ve long maintained that holistic reform will deliver the best outcome and ensure the UK remains a leading place to do business. The detailed response marks a step forward and its significance should not be underestimated.”

Hemione Hudson, Head of Audit, PwC UK

Restoring Trust Series

We believe that there are many benefits of proactively pushing ahead with a number of the proposals and have developed our Restoring Trust Series which contains practical guidance for companies who choose to do so.

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“The‌ ‌Government's‌ ‌proposals ‌bring ‌an‌ ‌opportunity‌ ‌for‌ ‌the‌ ‌UK‌ ‌to‌ ‌lead‌ ‌on‌ ‌corporate‌ ‌governance‌ and‌ ‌maintain‌ ‌its‌ ‌position‌ ‌as‌ ‌a‌ ‌world‌ ‌leading‌ ‌capital‌ ‌market.‌ ‌To‌ ‌meet‌ ‌this‌ ‌ambition,‌ ‌the‌ ‌more‌ ‌companies‌ ‌that‌ ‌take‌ ‌the‌ ‌time‌ ‌to‌ ‌understand‌ ‌what‌ ‌the‌ ‌proposals‌ could mean‌ ‌for‌ ‌them‌ ‌and‌ engage in the ongoing debate,‌ ‌the‌ ‌greater‌ ‌the‌ ‌prospect‌ ‌that‌ ‌the‌ ‌reforms‌ ‌will‌ ‌enhance‌ ‌the‌ ‌business‌ ‌environment‌ ‌and‌ ‌build‌ ‌trust‌ ‌and‌ ‌confidence‌ ‌in‌ ‌the‌ ‌UK’s‌ ‌reporting‌ ‌and‌ ‌regulatory‌ ‌frameworks.”‌

Marco Amitrano,Head of Clients and Markets, PwC UK
Marco Amitrano

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Hemione  Hudson

Hemione Hudson

Global Chief Risk and Regulatory Officer, UK Chief Network Officer, EMEA Executive Chair, PwC United Kingdom

Sotiris Kroustis

Sotiris Kroustis

Partner, UK Head of Public Policy, PwC United Kingdom

Tel: +44 (0)7841 490928

Marco Amitrano

Marco Amitrano

Alliance Senior Partner, PwC UK & Middle East, PwC United Kingdom

Jayne Kerr

Jayne Kerr

Director, UK Public Policy, PwC United Kingdom

Tel: +44 (0)7740 241129

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