The new Code will strengthen independent oversight of the largest UK audit firms and builds on plans to operationally separate the Big Four firms to improve audit market resilience by ensuring that no material, structural cross subsidy persists between the audit practice and the rest of the firm. It has also introduced measures to ensure that the wider global networks are overseen to avoid undue risk to the UK firm.

The new Code is a result of the findings of a monitoring programme undertaken by the FRC which identified scope to further strengthen its oversight and governance, and to align the provisions of the Code with operational separation for the Big Four firms.