ShareSoc and the UK Shareholders Association made a joint submission in a massive 77 page response to the BEIS consultation "Restoring trust in audit and corporate governance".
Our full consultation response is here: BEIS-Restoring-trust-in-audit-and-corporate-governance-Joint-response-from-UKSA-and-ShareSoc-1-July-2021
The FCA consultation document can be read here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/970673/restoring-trust-in-audit-and-corporate-governance-command-paper.pdf
Stakeholder and wider public trust in the credibility of directors’ reporting and the statutory audit has been shaken by a succession of sudden and major corporate collapses which have caused serious economic and social damage.
We consider that these collapses ...
Following publication of the Government’s consultation Restoring trust in audit and corporate governance the FRC will be hosting a series of webinars and roundtables to provide further insight on key aspects of the consultation and to provide interested stakeholders with an opportunity to share their views and comment on the government’s proposals.
Further details about how to participate in the FRC’s extensive engagement programme is available here. The FRC have organised a series of webinars for those interested in the Government's latest consultation ...
ShareSoc News Item, by Cliff Weight, Director.
Proposal to adopt ISQM (UK) 1 Quality Management For Firms That Perform Audits Or Reviews Of Financial Statements, Or Other Assurance Or Related Services Engagements, ISQM (UK) 2 Engagement Quality Reviews, and revise ISA (UK) 220 (Revised November 2019) Quality Control For An Audit Of Financial Statements
ShareSoc and UKSA made a joint response to this FRC consultation. The key points we made were:
We believe most shareholders look to audits of annual financial statements to underpin their confidence and trust ...
Official News Item by Cliff Weight, Director
ShareSoc and the UK Shareholders Association made a joint response to the FRC on the FRC’s Draft Plan and Strategy and Budget 2021/ 2022. Our key points were:
We believe that this sets out sufficiently clearly the FRC’s plans and strategy for the coming year. We are not able to comment in any detail on the proposed budget but we believe that, with minor exceptions, it provides as much information as most stakeholders are likely to require.
A ShareSoc news item by ShareSoc Director Cliff Weight
ShareSoc and UKSA submitted a joint response on 19th February 2021. In summary we said:
A long history of regulatory failures demonstrates serious deficiencies in the way financial services are currently regulated.
The UK’s departure from the EU means that the UK can now set its own financial services rules, untrammelled by the views of 27 other countries.
We believe that major changes are required, particularly in the following areas:
Making the best ...
A ShareSoc news item by ShareSoc Director Cliff Weight
The fundamentals of financial regulation are under question
Recent regulatory failures (for example Woodford, the mis-selling of mini-bonds peddled by London & Capital Finance, Wellesley, and the failure to protect pensioners being pressured by advice on pension transfers from commissioned agents) have forced a welcome review of current practice. ShareSoc and UKSA are responding to make sure the interests of ordinary savers and investors are properly safeguarded.
Two separate consultations are in progress, for HM ...
I attended two seminars organised by ShareSoc and UKSA with the Financial Reporting Council (FRC) yesterday (24/11/2020) and the day before. The first session was about the “ARGA transformation”, i.e. the steps being taken to improve the audits of companies and the reporting of accounts following the Kingman review two years ago. ARGA stands for Audit, Reporting and Governance Authority which will be the new name for the FRC.
Before reporting on the meeting, it’s worth noting the latest example of how ...
By Cliff Weight, Director, ShareSoc.
I think the FRC is doing a much better job. The record fine for Deloitte re Autonomy, (see Compliance Week: FRC fines Deloitte record $19.4M for Autonomy audit failures ) and the fines at Redcentric and Redcentric's auditors, and the prosecutions of former Redcentric directors in Southwark Crown Court are further evidence that things are changing. As is the transitioning from FRC into ARGA.
But don't take my word for it. Come to the FRC events we have organised ...
There have been repeated examples of the accounts of public companies being fraudulent in recent years. Wirecard was probably the latest and biggest example. I have seen examples of such misdeeds twice in my investment career in my own holdings although losses have been minimal in both cases, the last example being Patisserie (£95 million missing from their accounts). But I have avoided a lot of others where the losses to some investors have been enormous. There have simply been too ...
A ShareSoc News article written by Cliff Weight, Director
This is an excellent report. The FRC appear to have taken on board many of the points we raised. I particularly liked the recommendations that investors provide their email address to the company/registrar to facilitate communication; and the description of the purpose of the AGM-
The Annual General Meeting (AGM) is an essential governance event for companies and their shareholders. It should provide transparency, accountability and integrity, to company governance and decision-making. It is ...