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Lord Leong (Lab)

Speaking in the House of Lords on 31 March 2025

Debate

Audit, Reporting and Governance Authority

Contribution

My Lords, the Financial Reporting Council has put in place transparent procedures which ensure a separation between decision-making on standards and enforcement. The draft Bill will continue the transition of the FRC into a revamped regulator—ARGA—with powers for the setting of standards, including on accounting, reporting and audit. Decisions to open an investigation under FRC enforcement schemes are taken by the Conduct Committee. Once an investigation has opened, case decisions are taken by the FRC executive council or its deputies based on the recommendation from the independent case examiner, which plays no part in standard-setting.

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