The Business, Energy and Industrial Strategy (BEIS) Committee has backed the government’s preferred candidate for the post of chair of the Financial Reporting Council. The committee has published a report following its pre-appointment hearing on Wednesday 17 July. In endorsing his appointment, the BEIS Committee has made a series of recommendations to help ensure the reforms necessary to deliver a tougher, more effective and independent regulator are delivered.

Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy (BEIS) Committee said: "This is the most important pre-appointment hearing that the Committee has undertaken in this Parliament. Our inquiry on Carillion and on the future of audit highlighted in stark terms the weaknesses which exist in audit and the pressing need for a regulator which is independent, pro-active, and tough. There is no doubt that radical reform will be necessary to transform the FRC’s successor body into the regulator which businesses, investors, workers, and the public can rely on.

"We want the new chair of the Financial Reporting Council to show the independence and challenge vital to deliver a regulator ready and willing to correct the problems in the audit sector. As a Committee, we will continue to take a keen interest in audit reform and monitor the FRC’s role in delivering the changes needed to help avoid future accounting and corporate scandals."