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UK FRC Finalizes Governance Code

UK FRC Finalizes Governance Code

by Starling Insights

Starling Insights Editorial Board

Feb 01, 2024

Observations

Last week, the UK Financial Reporting Council (FRC) published the final version of its updated Corporate Governance Code. The changes to the Code, which primarily revolve around the effectiveness of internal controls, will come into effect in January 2026.

When the FRC initially published a consultative draft of the Code in May 2023, it contained 18 proposed changes. These included heightened diversity reporting requirements and new audit committee responsibilities for environmental, social, and governance (ESG) issues. The FRC elected to do away with many of these reforms late last year in the name of industry competitiveness.

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