The Financial Reporting Council has said it has taken a number of steps to allay concerns over corporate governance in the City, in a letter to the chairman of the Treasury Select Committee John McFall. The letter comes as a response to the committee's report on corporate governance: Banking Crisis: reforming corporate governance and pay in the City, which was published in the summer following a number of parliamentary debates on the causes of the banking crisis. A number of recommendations were made to the FRC on how it could enhance its role as the regulator of corporate governance of financial institutions in the City. 'The Treasury Committee made a number of significant recommendations in relation to corporate governance, corporate reporting and auditing,' said outgoing chief executive of the FRC Paul Boyle. 'We welcome their interest in our work and we hope that publication of our response to the committee's report will be helpful to our stakeholders in understanding the steps we have taken or are taking in relation to the matters within the scope of the FRC's responsibilities.' In its response, the FRC said it supported the Committee's conclusion 'that there is little evidence that auditors failed in their duties as currently stipulated and the fact that some banks failed soon after receiving unqualified audit reports does not necessarily mean that those audits were deficient'. 'We have, however, identified a number of respects in which auditors could improve the robustness of their practices,' it added. The FRC said various actions had been taken to improve corporate governance, including a review of the Combined Code, during which it has been working with Sir David Walker to review corporate governance of banks and other financial institutions and incorporate more recommendations into the Code. The controversial area of audit and non-audit services is also under review by the Auditing Practices Board, following concerns raised about auditors' independence. The regulator said steps are also being taken to initiate recommendations on corporate reporting, as published in its Louder than Words report earlier this year, which addresses complexity issues around financial reports.