The Financial Reporting Council (FRC) today announced its 2023-2026 draft 3-Year Plan which sets out its priorities for the next three years and the resources it will need to achieve them.
The plan incorporates a balanced yet assertive approach and reflects the delay of anticipated legislation to create the Audit, Reporting and Governance Authority (ARGA), which has had an impact on the associated increase in capacity, cost and headcount previously expected to occur in 2023.
Overall, the budgeted cost of the FRC and the UK Endorsement Board will increase to £67.9m, up from £59.8m last year, with a 9.7% increase in budgeted headcount by March 2024.
The FRC has used 2022 to focus on the changes it can make with the powers it already has. The 2023-26 plan includes the completion of activities we publicised in our July Position Paper as well as looking ahead to the creation of new statutory powers and functions for ARGA, which we currently assume will occur in 2024.
FRC chief executive, Sir Jon Thompson, said: “Despite the continued delay to the legislation required to create ARGA, 2022 was another busy period for the FRC as we continue to focus on the changes we can make using our existing powers and remit.
Thompson went on to conclude: “This plan will enable us to deliver on our mission to serve the public interest and improve the quality of corporate governance and reporting and continue to work towards the aspirations of the reform programme.”