Corporate governance will evolve to meet the changing needs of the UK

Sep 01, 2017
The Financial Reporting Council (FRC) has welcomed the UK Government’s response to its green paper on corporate governance reform and will use the feedback to help inform the development of its consultation on a fundamental review of the UK Corporate Governance Code later this year.
 
According to the FRC, corporate governance in the UK is deservedly globally renowned and has been a key factor in the flow of investment to UK businesses. Maintaining the appeal of UK business to global investors is a key challenge for the Government and regulators with Brexit on the horizon, it said.
 
As the 25th anniversary of the UK Corporate Governance Code approaches later in 2017, the FRC has committed to carry out a fundamental review of the Code’s current structure to ensure it promotes trust and integrity in business.
 
The FRC believes an updated UK Corporate Governance Code, working alongside the UK Government’s proposed Industrial Strategy, will stand the UK economy and society in good stead well into the future.
 
Speaking on the announcement, Stephen Haddrill, CEO, FRC, said, "The UK's deserved reputation for good corporate governance, earned over the last 25 years, has underpinned British business success. How we develop the framework will be key to boosting competitiveness, transparency and integrity in business particularly after Brexit. Successful and sustainable business are not just good for the economy, they support wider society by providing jobs and helping to create prosperity."
 
He added: "Large private companies are integral to the UK economy as significant employers and supporters of communities and families. It is right that we develop a set of corporate governance principles to enhance confidence that they act in the public interest."

Source: Financial Reporting Council.