The FRC’s latest revision of the UK corporate governance code hones in on internal controls. The FRC says boards should be monitoring the company’s risk management and internal control framework and, at least annually, carry out a review of its effectiveness.
The code says boards need to explain through a declaration in their annual reports how they have done this and their ‘conclusions’.
This new code expectation for the Board declaration will come into effect from 1 January 2026, so it is some way off!
FRC CEO Richard Moriarty said therevised code enhances transparency on internal controls, but in a way that is proportionate and minimises reporting burdens on businesses.
Check out our feature on this in the March issue, out now: https://issuu.com/pqpublishing/docs/pq_mar24_multi.
