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ICAEW responds to revised Corporate Governance Code

Author: ICAEW

Published: 22 Jan 2024

Commenting on the revisions to the Corporate Governance Code, announced by the Financial Reporting Council today, Peter van Veen, ICAEW Director, Corporate Governance and Stewardship, said:

“The revised Code is a welcome step forward, as increasing the focus of boards on internal controls and managing risk should strengthen corporate governance overall, and in turn boost investor confidence. However, without adequate powers handed to the FRC we worry that these revisions could lack the desired impact.

“Even with the upcoming guidance it may not be possible to avoid a Sarbanes-Oxley-style regime by the back door and more work may be needed by the profession and the regulator to avoid this.

“We previously expressed our concerns that companies would have insufficient time to report on their internal controls and risk frameworks by the proposed deadline. We are pleased that the FRC has listened to our calls and that of members in delaying the introduction of these requirements to January 2026 which should give companies enough time.

“The FRC’s decision not to run a public consultation or consult key stakeholders on the contents of the associated guidance due out later this month feels like a missed opportunity, as does the gap in alignment with the revised G20/OECD Principles for Corporate Governance, especially in relation to its section on sustainability.”


Notes to editors:

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