Following no less than three reviews of UK Audit and Corporate Governance (Kingman, CMA, Brydon), in March of this year the Department for Business, Enterprise and Industrial Strategy (BEIS) published its White Paper for consultation on “Restoring trust in audit and corporate governance”. This represents a set of government proposals for Corporate Governance reform to which interested parties have now responded: it is expected that the final version of the measures will be published later this year and in due course become law in the UK as required.
The background to the White Paper is formed by recent failures of Corporate Governance and Audit, highlighting the importance of a trusted Audit and Corporate Governance regime.
Given Fidelio’s clear focus on Board effectiveness and composition, we take an active interest in the White Paper and have contributed our response. In this Overture we explore some of the proposed regulatory responses to earlier corporate failures which are under consideration in this White Paper. If adopted these proposals could have profound implications for UK Boards and therefore also in the longer term also be of significance internationally.
Governance Under Review
This Overture focuses on the following aspects of ‘Governance Under Review’:
- Scope of Regulation
- Directors’ Duties
- The Regulator FRC-ARGA
For further details and to continue reading, please click here.
Governance Next Steps
We recognise the importance of rebuilding trust in Audit and Corporate Governance and understand the logic behind the White Paper. It is important that proposed reforms take full consideration of the need to attract strong candidates from diverse backgrounds to serve on Boards. A framework that is fair and clearly communicated can support this.
Fidelio is pleased to have both contributed to the debate on the future of governance but also importantly we are working on a daily basis with Boards to strengthen governance and effectiveness and to increase the value that the Board adds. We are supporting listed companies, Private Equity and charities, in the UK and internationally, all of which can see the benefits of an effective and high performing Board. And finally, we would always emphasise the importance of judgement, so that Boards have the opportunity to comply, or if appropriate, explain.
For further information on Fidelio’s approach to “building better Boards” through Evaluation, Development and Search, please contact email@example.com.