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6th August 2018 - We responded to the independent review of the Financial Reporting Council's call for evidence.
We responded to the independent review of the Financial Reporting Council's call for evidence.
Overall, we considered the FRC’s mission statement to be too broad for a single body. Public trust in business has remained low since the 2007/08 financial crisis; the FRC’s wide-ranging functions have reduced its effectiveness in reversing this trend.
We commented that while we remained open-minded as to the specific structure of the FRC, or alternative institutional framework, we believed that the independent review represents a unique opportunity to rethink the relationship between regulators and companies in the UK.
We commented that any successful and sustainable framework for regulating business must be underpinned by three principles:
- Placing proportionality at the heart of regulation making;
- Ensuring the representation of all companies across the market on the committees and governing bodies of regulatory bodies; and
- A clear separation of responsibilities for standard setting and enforcing rules.