FRC tells companies what it expects under the new UK Corporate Governance Code
Companies, investors and proxy advisers bear a share of the responsibility for making the revised UK Corporate Governance Code a success. This is the message Sir Win Bischoff, the Chair of the Financial Reporting Council, has given to market participants in letters sent out following publication of the revised Code.
The letters encourage high quality reporting, which avoids a "tick-the-box" approach and includes clear explanations, because their use is viewed by the company as a positive opportunity to communicate, rather than an onerous obligation. The FRC also highlights that the best reporting will include signposting and cross-referencing to different parts of the annual report, as relevant.
This call to arms is amplified by the FRC's intention to escalate its monitoring of practice and reporting, now that the revised Code has been published.