Today, BEIS announced that the independent review recommends that the FRC be replaced with an independent statutory regulator called the Audit, Reporting and Governance Authority.
In response, Tim Ward, Chief Executive, Quoted Companies Alliance, said:
"Sir John Kingman’s recommended approach to reconditioning the FRC and placing proportionality at the heart of regulation is hugely welcomed. Small and mid-size companies make up the vast majority of companies on public markets and the Review's recommendations rightly reflect this.
"The needs and size constraints of smaller companies must be at the forefront of regulators’ thinking when formulating new standards and regulatory requirements. This is a key component to stimulating the growth and development of smaller companies, as well as overall growth in the UK economy, whilst ensuring that businesses are not overburdened by compliance requirements.
"Just this week the FRC announced that its Future of Corporate Reporting Advisory Group, disappointingly, does not include smaller company representation. We trust that this new proportionate approach recommended by Sir John Kingman will ensure that this sort of thing does not happen in the future."
In its response to the consultation, the QCA recommended that "proportionality at the heart of regulation making" in any future changes - see here.