FRC publishes its third Annual Enforcement Review

Article summary

The Financial Reporting Council (FRC) has published its third Annual Enforcement Review, which states that its Enforcement Division has grown by 44% in the last year, enabling faster case resolutions. The number of investigations opened has also increased. The report shows a record number of cases resolved through constructive engagement and for matters subject to enforcement action, 28 non-financial sanctions have resulted. The total value of financial sanctions was £16.7m and included the highest sanction imposed to date in any FRC case (a £15m sanction against Deloitte for its audit of Autonomy). The report considers future challenges posed by the coronavirus (COVID-19), Brexit and climate change and examines the implications of the government's ‘Restoring Trust in Audit and Corporate Governance’ white paper.