The Financial Reporting Council (FRC) has commissioned an independent review of the sanctions it imposes under its enforcement procedures, with a focus on its financial penalties after ‘some very public accidents’
The review will consider matters such as whether the reasons for imposing sanctions set out in its guidance and policies remain appropriate, the fairness and the effectiveness of the range of sanctions available under the enforcement procedures, and whether the financial penalty sanctions, in particular, are adequate to safeguard the public interest and deter wrongdoing.
It will be conducted by an independent panel chaired by former Court of Appeal Judge, Sir Christopher Clarke.
He will be joined by two senior industry figures with subject matter and regulatory expertise.
Peter Chambers is a former non executive director at the FRC and a former CEO Legal & General Investment Management (LGIM). He is currently chairman of the company reporting and auditing group (CRAG) and a senior advisor to a number of companies including Casey Quirk by Deloitte, the US management consultancy business.
Andrew Long, whose main career was as a partner at law firm Pinsent Masons, was previously chair of the regulatory decisions committee of the Financial Conduct Authority. He now chairs the determinations panel of the Pensions Regulator, is a judge of the First Tier Tax Tribunal, and is a member of the Ofgem enforcement decisions panel.
None of the panel are accountants.
The FRC said the independent panel will in due course issue a call for evidence and seek evidence from a range of relevant organisations and individuals. Further announcements will follow as the review progresses.
Confirming the body’s intention to review sanctions in February, Sir Win Bischoff said: ‘Audit and reporting in UK are world-leading, but there have been some very public accidents and there will have to be changes.'
