In a significant move towards reestablishing trust in corporate governance and auditing disciplines, the Department for Business & Trade is set to introduce new regulatory reforms. On 19 July 2023, the Department published draft regulations, colloquially referred to as “the Regulations”. These will effectively carry forward the pledges made by the government with the wrap-up of its restorative audit and corporate governance review.
For a comprehensive overview of this development, readers are advised to refer to the Shearman & Sterling LLP report. In addition to the draft regulations, an explanatory memorandum on the guidelines was also made available. The Department further supplemented its publication by offering non-legal but insightful guidance on its website.
In accordance with these advancements, significant changes are expected in the corporate reporting framework later this year. The Financial Reporting Council (FRC) is projected to set forth their publication agenda regarding the matter.
This move marks a substantial evolution in the way corporations confront and manage their auditing and reporting obligations. Consequently, legal professionals in this space should conscientiously acquaint themselves with the upcoming changes. This is to ensure the compliance of their organizations or clients and to leverage any potential benefits encapsulated in the new structure.