FRC opens consultation on draft Strategy 2025-28

The Financial Reporting Council (FRC) has published its draft three-year strategy for 2025-28, emphasising its commitment to safeguarding public trust, ensuring high standards in corporate governance, and supporting UK economic growth.

The FRC has launched a consultation to gather stakeholder input on the strategy, which it describes as “pivotal” in shaping its future priorities. The strategy aims to uphold confidence in corporate governance, corporate reporting, audit, and actuarial work while fostering an environment conducive to investment and economic growth.

Richard Moriarty, FRC CEO, reflected on his first year in the role and emphasised the council’s focus on delivering its public interest mandate:

“Since taking on the role of CEO a little over a year ago, I have focused on ensuring the FRC is restless at seeking to improve the way it delivers its public interest purpose and supports UK economic growth and investment. Our draft three-year strategy and draft Plan and Budget for 2025/26 embody this approach.”

The strategy includes a commitment to enhance the FRC’s regulatory framework by adopting a “modern, forward-looking” approach. Key initiatives include evolving the supervision of audit firms and reviewing enforcement procedures, which will be developed through extensive engagement with stakeholders.

The FRC remains conscious of the economic challenges facing levy payers. To mitigate this, the council has committed to maintaining a flat headcount and identifying further efficiencies to avoid unnecessary cost increases.

Moriarty further outlined the strategy’s priorities:

“The strategy includes the FRC’s continued commitment to uphold high standards of corporate governance, corporate reporting, audit, and actuarial work to ensure trust and confidence in businesses across the UK. This in turn enables them to attract investment and grow as well as maintain broader stakeholder support. The strategy also includes important commitments to review our regulation to ensure it is effective, proportionate and best designed for the future.”

Additionally, the FRC welcomed the government’s plans to reform and modernise its statutory framework, as announced in the King’s Speech in July 2024. These reforms will strengthen the council’s ability to deliver on its public interest mandate with a more robust statutory foundation.

The consultation on the draft strategy is now open, and the FRC encourages stakeholders to participate in shaping its direction for the coming years.