The Financial Reporting Council (FRC) has published a set of principles that it will use to assess whether the public interest is best served by carrying out regulatory, supervisory and enforcement work
The principles focus on investigatory work that is outside of the FRC’s primary regulatory perimeter as it transitions to the Audit, Reporting and Governance Authority (ARGA).
The FRC is responding to imminent changes to the definition of a public interest entity (PIE) which will be extended to include companies with over 750 employees and a turnover of over £750m.
Much of the scope of ARGA’s work is expected to be determined by this new definition, however, the government also recognised there will be exceptional circumstances where ARGA should take regulatory action in areas of public interest that are not within this regulatory focus.
The principles the FRC has set out form the basis of the public interest considerations ARGA will take into account when determining whether it would be appropriate to act.
