The Financial Reporting Council has opened an office in Brussels which it says will provide a greater line of sight into European institutions and allow the regulator to engage more effectively on EU issues.
The regulator announced the moves - part of its plans to build up its international influence - within its Plan and Budget report.
Apart from developing a stronger voice in Europe, the FRC also announced increases to its budget.
For the first time, the FRC's plans take a forward-looking long-term approach, covering a three year period, from 2013-2016. The regulator says this is because its work 'does not fit into neat yearly cycles' and a longer time horizon will allow the FRC 'to focus on how it and its stakeholders move forward in line with the shifting UK and European agenda'.
The plan states that: ' While our traditional stakeholders remain a vital part of the focus of our activities we have witnessed the emergence of new and equally important stakeholders at an international level with whom we must engage and collaborate, including major investors such as sovereign wealth funds and new institutions such as ESMA and EIOPA'.
The FRC's expected income for 2012-2013, which was estimated at £22.1m, is now forecast to be £24m, with expenditure estimated at £23.9m. The budget for income and expenditure for 2013-2014 is £24.5m, and the regulator says the plan does not set budget or levy increases beyond this date.
Following feedback from an earlier consultation, the minimum rate for the preparers levy will now be increased by 2.8% rather than 4.4% as proposed. The FRC says this will largely benefit the smaller publicly traded companies and public sector organisations. As proposed, the rates for the organisations subject to the other levy bands will be increased by 8.5% compared to those applied in 2012/13.
The plan also shows that accountancy disciplinary case costs are forecast to rise, reaching £5.8m in 2012-2013 compared with the original estimate of £4.0m, with a number of current cases flowing through to 2013-2014.
The plan provides a timetable for the FRC's monitoring and oversight work over the next three years, including a review of the corporate governance code, and consultations on going concern and directors guidance.
The FRC says its work on corporate reporting during this period will focus on two key areas. These are relevance to investors, where the regulator says its Financial Reporting Lab has had some impact but 'much more remains to be done', and progress on globally consistent accounting standards, which it says has stalled.
FRC CEO Stephen Haddrill said: 'We recognise that confidence in markets and companies remains critical for investors and longer term economic recovery. Our vision is of a future where the needs of investors are fully aligned with the corporate governance and approach to corporate reporting by companies and their auditors.'
