ICAEW seems less than impressed with the Financial Reporting Council’s consultation on the Corporate Governance Code.
The institute said the UK is in real danger of losing its global reputation for best practice in corporate governance.”
ICAEW explained that the current proposals omit major aspects of the new G20/OECD Principles for Corporate Governance, such as sustainability and the need for companies to have ethics and compliance programme.
This said ICAEW represents a potential missed opportunity.
Plans to put director accountability and audit committees at the heart of governance reforms was welcomed by the ICAEW.
ICAEW’s Peter van Veen said: “We would have liked to have seen a more joined up review of the Code and associated guidance as that would have given a clearer picture of what the proposed changes are likely to mean in practice. The absence of a section dedicated to sustainability is also disappointing given the increasing importance of international climate disclosures and new sustainability reporting regulations coming into force.
The FRC consultation closed on 13 September 2023. An updated Code is expected to be published early next year.