The Financial Reporting Council (FRC) has announced an expansion of its innovation programme through its Innovation and Improvement Hub, launching a new Audit Tech & AI Sandbox, a research project on barriers to audit technology adoption, and a second round of its Simplifying Annual Reporting Sandbox. The Audit Tech & AI Sandbox will enable audit firms of all sizes to work with the FRC to assess how auditing standards apply to emerging technologies, including artificial intelligence and advanced software, with the aim of improving audit quality, efficiency and competition while maintaining high standards. The accompanying research project will examine obstacles faced by smaller audit firms in adopting technology and identify practical solutions. The FRC has also reopened applications for its Simplifying Annual Reporting Sandbox, which supports companies in reducing the length and complexity of annual reports to improve clarity for investors and lessen reporting burdens, with a particular focus on smaller listed companies. In addition, the FRC published the findings of its SME audit materiality sandbox, which explored more proportionate approaches to auditing smaller entities and identified potential measures to address concerns that existing materiality practices can result in disproportionate audit work for SMEs.

The Financial Reporting Council (FRC) has announced the final group of signatories to the UK Stewardship Code 2020. The Code now has 291 signatories, representing £57.3trn in assets under management, comprising 197 asset managers, 75 asset owners and 19 service providers. These organisations will be the last to report under the 2020 framework ahead of the transition to the UK Stewardship Code 2026. The UK Stewardship Code 2026 came into effect on 1 January 2026, with 2026 designated by the FRC as a transition year. Existing signatories that submit renewal applications during this period will remain on the signatory list under their 2020 status, while organisations not included in the final 2020 list may apply under the 2026 framework. The FRC has also published optional guidance that includes examples of effective reporting under the 2020 Code to assist organisations transitioning to the 2026 reporting structure.

The Financial Reporting Council (FRC) has released a press notice announcing the initiation of an investigation into one or more statutory auditors and/or statutory audit firms. The investigation is solely focused on the relevant statutory auditors and/or audit firms, and should not be interpreted as involving any other individuals or entities. The FRC has launched an investigation into KPMG LLP's audit of Entain plc's consolidated financial statements for the year ending on 31 December 2022. This decision was made during a meeting of the FRC's Conduct Committee on 21 November 2024. The FRC's Enforcement Division will carry out the investigation under the Audit Enforcement Procedure.

The Financial Reporting Council (FRC) has published a statement on its intent to launch a review of the UK Stewardship Code (the Code). The review will look to determine whether the current Code is being used by asset managers, asset owners and its other signatories in a manner that drives better stewardship outcomes from engagement with issuers across all asset classes. The revised Code is expected to be published in 2025.

The Financial Reporting Council (FRC) has announced a revised approach to audit supervision, intended to support a high quality, resilient and trusted UK audit market and profession and has also published a policy statement outlining how the new model will operate. It states that the revised approach represents an evolution of its supervisory framework. The FRC says that it is designed to provide a more proportionate, effective and integrated system of oversight, reflecting changes in the audit market and wider ecosystem.

The Financial Reporting Council (FRC) has issued a Final Settlement Decision Notice and has imposed sanctions against KPMG LLP and a former partner, and Statutory Auditor, at the accounting firm, Nicola Quayle. The Notice relates to auditory discrepancies found in the 2017 audit into the financial statements of Eddie Stobart Logistics Plc (ESL). The FRC has found failings relating to improper disclosure of financial statements, and KPMG’s inadequate audit evidence gathering of ESL’s role in property transactions. The FRC has imposed a £1.35m sanction against KPMG and a £700,000 sanction against Quayle. Both KPMG and Quayle have also received non-financial sanctions including a Severe Reprimand and have been ordered to make a declaration stating that the 2017 audit report did not satisfy the FRC’s Relevant Requirements.

The Financial Reporting Council (FRC) has announced sanctions against PricewaterhouseCoopers LLP (PwC) and Audit Engagement Partner, Philip Storer, relating to the statutory audit of financial statements of Eddie Stobart Logistics Plc (ESL) for the financial year ending 30 November 2018. A sanction of £3.5m was imposed against PwC, adjusted and discounted to £1,990,625 for exceptional cooperation, admissions and early disposal. A sanction of £90,000 was imposed against Storer, adjusted and discounted to £51,187.50 for exceptional cooperation, admissions and early disposal.

The Financial Reporting Council (FRC) has announced updates to the UK Stewardship Code (the Code) application process and identified five priority areas of review as it continues to revise the Code.

The Financial Reporting Council (FRC) has announced it will take over the governance of the Wates Corporate Governance Principles for large private companies from 31 December 2024. This transition follows Sir James Wates CBE's decision to step down as chair of the Wates Principles Coalition Group after seven years of leadership. The Wates Principles were developed in response to the Government's 2018 Corporate Governance Reform agenda and provide a comprehensive reporting framework for large private companies. CEO of the FRC, Richard Moriarty, has stated that the FRC is committed to maintaining high standards of corporate governance in this sector, which contributes over £850bn to the UK economy. This change aims to continue promoting good governance practices whilst supporting economic growth and protecting the broader public interest.

The Financial Reporting Council (FRC) has commenced an investigation on the audit conducted on the consolidated financial statements of NMCN plc for the year ended 31 December 2019 by BDO LLP. The decision to investigate the audit was made at the FRC Conduct Committee meeting on 14 September 2021. The investigation will be conducted by the Enforcement Division of the FRAC under the Audit Enforcement Procedure.

The Financial Reporting Council (FRC) has confirmed that the actuarial assumptions in Actuarial Standard Technical Memorandum 1 (AS TM1) will remain unchanged following its annual review and consultation. Version 5.2 of AS TM1 introduces only minor wording changes relating to fund volatility calculation dates, intended to clarify the FRC's policy position. The consultation, launched in November 2025, proposed no substantive amendments to the standard and received broad agreement from stakeholders. Pension providers will therefore continue to use the existing actuarial assumptions when calculating Statutory Money Purchase Illustrations for individual defined contribution (DC) pension schemes, of which more than 50 million are produced each year.

The Financial Reporting Council (FRC) has announced the launch of a consultation on the Actuarial Standard Technical Memorandum 1 (AS TM1) which specifies the assumptions and methods to be used in statutory illustrations of money purchase/defined contribution pensions (SMPIs). Following last year’s review of market conditions at 30 September 2023, the FRC had consulted on changes to the accumulation rate assumptions in AS TM1. Following that consultation, the FRC issued a revised AS TM1 v5.1 on 9 February 2024 effective for SMPIs based on calculations performed on or after 6 April 2024. Now based on a review of market conditions as at 30 September 2024, the FRC are proposing to maintain the current standard and make no amendments to AS TM1 v5.1 as there has been minimal changes in market volatility and return expectations since the previous review. Consequently, the FRC are proposing to maintain AS TM1 version 5.1 for SMPIs based on calculations carried out between 6 April 2025 and 5 April 2026. Stakeholders are invited to provide feedback to the consultation by 7 December 2024. The outcomes of the consultation are anticipated to be published by 15 February 2025.