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.