FRC
FRC CEO sets out focus for 2026
Richard Moriarty, Chief Executive of the FRC, set out the regulator’s priorities for 2026.
He highlights the five priorities for supporting economic growth:
- Underpinning investor confidence in UK plc
- Reducing unnecessary burdens on businesses while maintaining high standards
- Developing deep insight into the markets the FRC oversees so that regulation is based on evidence and expertise
- Identifying future trends and innovations to support the health of the markets it oversees, and supporting the skills and resilience of the professions it regulates
FRC report highlights non-Big Four firms continuing to build presence in PIE audit market
The FRC published its annual Audit Market and Competition Update, showing that non-Big Four firms continue to build their presence in the Public Interest Entity audit market. The report shows that non-Big Four firms have increased their share of Public Interest Entity audit engagements, from 22% at the start of the decade to 40% in 2024.
The FRC published its Annual Review of Corporate Governance Reporting, analysing reporting trends and practices among 100 UK-listed companies against the 2018 UK Corporate Governance Code for the last time. Key findings include companies reporting departures from Code provisions are increasingly providing clear and context-specific explanations for their approach as well as 25 companies disclosing a departure from at least one Code provision.
FRC updates guidance on non-executive director remuneration to support good governance
The FRC have updated their guidance on the remuneration of non-executive directors as part of the guidance supporting the UK Corporate Governance Code 2024. The update provides clarity on how companies can structure non-executive director remuneration, chiefly that companies may encourage non-executive directors to build personal shareholders to foster alignment with shareholders and reinforce long-term commitment.
FRC publishes key findings and good practice report
The FRC have published their key findings and good practice report in relation to the recent 2024/25 inspection cycles of audits conducted by the twelve largest audit firms. The publication of this report aims to support audit firms in evaluating their own risks and audit methodologies.
FRC highlights latest trends in accountancy and audit
Capping off the bevy of year end publications, the FRC have released the 23rd edition of their Key Facts and Trends report. The report features data from 31 of the 34 firms with Public Interest Entity clients. Data is also provided on the profession’s demographics, including age, gender and ethnic diversity across seniority levels and firm sizes.
ICAEW
ICAEW Council backs CIPFA merger plan
The ICAEW and CIPFA have shared further detail on their proposed merger, which is subject to various conditions being met. As part of the merger preparations, the ICAEW’s Council held open and confidential sessions in which members challenged and scrutinised the proposal in detail. Following on from the sessions, the ICAEW’s Council delegated authority to Peter Wyman and Alan Vallance to take forward the work required to prepare the underlying agreements.
How auditors can navigate legal privilege
The ICAEW have highlighted the ICAEW’s Audit and Assurance Faculty’s update to its Technical Release on how auditors communicate with solicitors. The update, taking into account decisions such as A v B and the Financial Reporting Council [2020] EWHC 1491 and Financial Reporting Council v Sports Direct International plc, sets out an explanation of what privilege is, auditors’ duties that could be impacted by legal privilege, as well as the extent to which auditors are entitled to call for legally privileged information and whether the audited entity can withhold such information.
New ICAEW guideline puts HR due diligence under the spotlight
The ICAEW have released new guidelines that focus on cultural and people-related risks and opportunities that need to be considered in a transaction. The ICAEW have worked with Deloitte to produce guidance to better assess the people-related key factors that form part of a transaction. The guidance comes at a time of increasing private equity investment in the accountancy sector.
Ineffective customer due diligence at heart of AML compliance issues
The ICAEW have published its annual anti-money laundering supervision report for 2024/25. Common compliance failures included ineffective risk assessment documentation, ineffective client identification procedures and ineffective verification procedures. The report found that firms with less than £300k of income were under-represented within the population of firms referred for formal and informal follow-up action, while those with an income over £2m were over-represented.
The report was published in the wake of the seismic decision by the Treasury to move AML supervision away from the ICAEW to be taken over by a Single Professional Services Supervisor.
ACCA
Government decision a setback for audit and corporate governance
The ACCA have responded to the UK government’s decision not to establish the Audit, Reporting and Governance Authority. The regulator expressed their disappointment with the decision and conveyed their disagreement with the government’s notion that the need for reform was less present at present. The ACCA signalled their desire to work alongside the government in enabling the FRC to be put on a proper statutory footing.
Government urged to take on a holistic approach to regulation
The ACCA have published a response to the UK government’s consultation on business red tape, urging the government to take a ‘one-minus-two’ approach, namely that for every business law adopted, two unnecessary laws are removed. In their response, the ACCA highlighted the complexity of the UK tax system, the need for data sharing amongst regulators, and the need for an update to 2018 data protection laws.
GMC
GMC publishes new corporate strategy - GMC
The GMC have published a new corporate strategy. The new strategy covers the next five years of the GMC’s work. There are four central themes shaping the strategy, namely supporting good, safe patient care; delivering better, fairer regulation; making every interaction matter; and being an inclusive and well-run organisation.
Professor Dame Carrie MacEwen, Chair of the GMC said, ‘Our new corporate strategy will help us shape our work towards our goal of being an effective, relevant and compassionate regulator – for patients, the public and professionals – and as an employer’.
RICS
RICS joins forces with UK regulators to tackle shared challenges and deliver public value
RICS has joined the UK Regulators Network, a respected forum bringing together 17 of the country’s most respected statutory and professional regulators. As part of the network RICS will engage in cross-sector collaboration on shared challenges and opportunities, ranging from enhancing public trust in regulation to supporting economic growth and ensuring fairness across industries.
SRA
SRA consults on new proposals to strengthen safeguards for client money
The SRA have begun consulting for proposals to strengthen protections for client money. The consultation outlines potential changes to approaches to firms’ obligations around accountants and the division of regulatory roles within firms.
Proposed changes to the rules on accountants’ reports include the introduction of a mandatory annual declaration that all firms must complete, a requirement that reporting accountants submit reports directly to the SRA, and the introduction of fixed financial penalties to firms who submit late or provide incomplete declarations.
The proposed changes to the compliance officer arrangements look at addressing the risks relating to a single individual with significant power and control within a firm also occupying key regulatory compliance roles.
Hear from new SRA Chief Executive Sarah Rapson
The SRA have appointed a new Chief Executive, Sarah Rapson. She was previously the Executive Director of Supervision at the Financial Reporting Council. Rapson set out her initial priorities, such as understanding where the organisation is succeeding and how it could do better.
BSB
The Bar Standards Board publishes its Annual Report for 2024-25
The Bar Standards Board have published its Annual Report for 2024-25. The report details the progress in implementing the Reform Programme and the activities over the final year of the 2022-25 strategy, with its focus on efficiency, standards, equality, access and independence.
The Bar Standards Board have published its 2024-25 annual report on anti-money laundering and counter terrorist financing. The report sets out how the Bar Standards Board are meeting their responsibility as a professional body supervisor under the Money Laundering Regulations 2017.
UKCP
Commission for the Future of Counselling and Psychotherapy
The UK Council for Psychotherapy have launched a new independent Commission on the Future of Counselling and Psychotherapy. The commission will examine the current and future landscape of the professions and the key issues affecting the sector, professionals, services and clients.
The commission process will conclude with a final report, setting out recommendations which will be published and shared with decision-makers who influence the delivery and commissioning of counselling and psychotherapy across the UK.
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