FRC

Record Fine on Deloitte, But It’s Not Enough       

The Financial Report Council (FRC) has fined accounting firm Deloitte £20.6 million (including costs) for its defective auditing of Autonomy. Deloitte is the largest of the big four audit firms and this is what the head of the firm said when talking about their 2019 results: “Our FY 2019 results are a validation of Deloitte’s strategy to deliver high-quality, globally consistent service to our clients while continuing to serve the public interest and working to restore trust in capital markets”. Revenue of ...

Redcentric: Unprecedented Progress for Shareholders – At Last

Two Cheers for the FCA in the Case of Redcentric Two cheers for the FCA: they have achieved a positive outcome for shareholders affected by the case, and have been pragmatic, albeit after a very long time. It is also good to see the other objective of our campaign potentially achieved - of prosecuting individuals for their alleged misdemeanors. Such actions are essential to deter others from criminal activity. Background Redcentric has been an extraordinary case. They key issues at the time when serious ...

Online discussion with the FRC on IFRS developments on Tuesday 5th May 15:30 -17:00

The Financial Reporting Council invites UKSA and ShareSoc members to attend an online discussion on the Endorsement Board on Tuesday 5thMay 15:30 -17:00 on Microsoft Teams. The UK Government is committed to the continued use of IFRS after EU exit to ensure transparency and international comparability of financial statements, and the efficient allocation of capital, including the smooth functioning of capital markets in the United Kingdom.  This event will provide an update for investors on the endorsement of IFRS for use in the ...

AGMs – Best practice needs to evolve

There needs to be a review of the guidance on company AGMs. In these difficult and uncertain times it is vitally important that companies continue to engage with investors, that they keep them up to date with events and foster their support and commitment. Never has the importance of the AGM been so high. It is now a month since the current lockdown due to Covid-19 was introduced. This has coincided with a particularly busy period in the annual reporting season with ...

Dividends – ShareSoc and UKSA send joint letter to FRC, FCA and BEIS

Many of our members are very concerned at the spate of recent dividend suspensions. Many members feel that private investors are much more concerned with the non payment of dividends than the problems at AGMs, about which we have blogged at length. Many members are somewhat surprised that ShareSoc have not pronounced on dividends, so it is timely to correct this. Not only are many private investors heavily dependent on dividends, so are many charities and pension funds. These points are very ...

FRC Consultation on Draft Plan and Budget 2020 / 21

On 25th February 2020, in a joint ShareSoc/UKSA response we responded to the FRC request for comment as follows: Thank you for circulating the Draft Plan and Budget to us for comment. Overall, we like the document that the FRC has produced. Aspects that we particularly like include: The structure: it is logical and easy to follow The content: the issues raised are thoughtful and meaningful. It is good, for example, to see the issue of transparency mentioned specifically. It is also good ...

Brydon Audit Review and FRC Update

Readers probably don’t need to be reminded of the poor reputation of auditors and accountants. The announcement yesterday from Staffline Group (STAF) reiterates the point. They note the latest...

FRC Fines Grant Thornton £650k, Ted Baker and Tullow

A ShareSoc member emailed us to give his view: This is terrible. Why wouldn’t the FRC name the partner and the company involved, especially when Grant Thornton has been...

Retail Shareholder Participation in Voting – US study

Cliff Weight, ShareSoc Director reviews Retail Shareholder Participation in the Proxy Process: Monitoring, Engagement, and Voting: Working Paper N° 637/2019 November 2019: By Alon Brav, Matthew D. Cain, Jonathon Zytnick This...

FRC: Individual Shareholders Engagement Meeting 5 Nov 2019

This was an excellent event, well organised by the FRC with about 80 attendees from ShareSoc and the UK Shareholders’ Association. It is very reassuring to hear the underlying...