Audit, Reporting and Governance Authority

The Audit, Reporting and Governance Authority is a proposed audit regulator intended to be established in the United Kingdom during 2019 to replace the Financial Reporting Council.[1][2] The government launched a consultation on the new regulator in March 2019.[3][4]

Kingman Review

Following accounting irregularities at companies such as Carillion, Patisserie Valerie and BHS, the UK government ordered a review of the current supervisory environment by the Financial Reporting Council (FRC). The review was led by Legal & General Chairman Sir John Kingman.[5]

The review recommended the urgent introduction of a new regulator, the Audit, Reporting and Governance Authority, which should be accountable to Parliament, with the intention to provide more effective oversight and address a concentration in the industry - the Big Four audit firms' market share with FTSE350 firms being 98% at the time of the report.[6][7][8]

In March 2019 Business Secretary Greg Clark announced he would implement the recommendation from the Kingman Review in 2019.[1]

Leadership

In July 2019, Clark announced that Simon Dingemans, formerly CFO at GlaxoSmithKline, had been appointed as the new chair of the Financial Reporting Council, and would lead its transition into the Audit, Reporting and Governance Authority.[9] However, he left the role in May 2020, citing conflicts between the part-time role and other positions he was interested in taking.[10]

References

  1. "UK audit watchdog to be replaced by new governing body". bbc.co.uk.
  2. "Audit regime in the UK to be transformed with new regulator". www.gov.uk.
  3. "UK audit watchdog to be replaced by new governing body". bbc.co.uk.
  4. "Independent review of the Financial Reporting Council: initial consultation on recommendations". www.gov.uk.
  5. "Kingman review | Institute and Faculty of Actuaries". www.actuaries.org.uk. Retrieved 2019-03-17.
  6. "Kingman Review says FRC should be replaced 'as soon as possible'". www.consultancy.uk. Retrieved 2019-03-17.
  7. "Subscribe to read". Financial Times. Retrieved 2019-03-17.
  8. "Government and profession back Kingman review". economia.icaew.com. Retrieved 2019-03-17.
  9. "New Chair of Financial Reporting Council announced". Gov.uk - Department for Business, Energy & Industrial Strategy. 23 July 2019. Retrieved 23 July 2019.
  10. Carrick, Angharad (15 June 2020). "Former FRC chairman Simon Dingemans joins Carlyle". City AM. Retrieved 15 June 2020.
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