Our Financial Reporting and Corporate Governance Expert Groups contributed to our response to FRC Draft Plan, Budget and Proposed Levies 2015/16. We supported the continued initiative by the FRC to improve the quality of reporting amongst smaller listed and AIM companies and welcomed the opportunity to continue working with the FRC and within our membership to achieve this. We noted that the FRC should work with companies on corporate governance by identifying and informing them of reporting problems that already exist.
We commented on the FRC's proposed increase in overall expenditure and core operating costs, as well as the planned increase in levy rates. We noted that the FRC has not justified the proposed increase in its budget and, therefore, the proposed increase in the levy. We have also noted that the proposed increase in the levy for companies with a market capitalisation of less than £1000m would mean that these companies would bear a disproportionate share of the increased cost.