FRC consultation on listed companies

The Financial Reporting Council (FRC) has launched a consultation on proposed changes to the UK Corporate Governance Code implementing the policies outlined in the Effective Company Stewardship: Next Steps paper published in September 2011.

The code applies to all companies with a premium listing on the London Stock Exchange for financial years beginning on or after 29 June 2010.

The key proposals cover the following areas:

• Audit tendering: the FRC originally intended to require all premium listed companies to put their audit contract out to tender at least every 10 years, but now proposes initially limiting this requirement to FTSE 350 companies.