A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

UK’s FRC Consults on Strengthening Ethical Standards for Auditors

The Financial Reporting Council (FRC) is looking to reinforce its ethical framework for UK auditors by launching a consultation on revisions to its Ethical Standard. The proposed changes aim to bolster the principles of integrity, objectivity, and independence that auditors are mandated to uphold. In a continuation of its commitment to reform the audit market, as outlined in its 2022 position paper, the FRC is also seeking to gather input on the potential withdrawal of the other entities of public interest (OEPI) category introduced in 2019. This move is in direct response to the evolving statutory public interest entity (PIE) definition, proposed by the UK government. One of the key proposed amendments to the Ethical Standard is the strengthening of restrictions when an audit firm’s independence could be compromised due to an excessive dependency on fees from specific connected entities. The revisions align with the updates made to the International Ethics Standards Board for Accountants (IESBA) Code, ensuring that the UK’s Ethical Standard remains in line with global benchmarks. Mark Babington, FRC Executive Director of Regulatory Standards, said:While many of these proposed changes reflect developments at the international level, additional enhancements have also been introduced to ensure the ethical requirements are clearly understood and abided by so that there can be no uncertainty of the standards expected.” Stakeholders and industry professionals are encouraged to participate in the consultation, which will remain open until 31 October, 2023.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top