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Paul Brehony comments on the winding down of the FRC following the absence of parliamentary time to enact the legislation to create ARGA in Compliance Week

By Paul Brehony

Partner Paul Brehony comments on when the Financial Reporting Council (FRC) will transition to become the Audit, Reporting and Governance Authority (ARGA), as the King’s Speech in November did not include parliamentary time to enact the legislation to create the ARGA.

Read Paul’s comments in Compliance Week, published 18 December 2023, here

“The government’s glacial progress with replacing the FRC has been blamed on government ineptitude, the lobbying power of the Big Four accountancy firms, and political expediency,” said Paul Brehony, partner at law firm Signature Litigation. “The skepticism is understandable, but given both major parties have committed to rolling it out—subject to the usual vagaries of realpolitik—it does seem likely that we will see an articulation of the current audit reform program (i.e., ARGA) by 2027 or thereabouts.”

Ironically, said Brehony, the FRC has been a more effective regulator since news of its imminent demise. He said it will remain in place for at least three more years, without many of the enhanced powers or independence of ARGA, even though its headcount and fees have increased in anticipation of the changeover.

 

 

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