The Financial Reporting Council (FRC) has launched a consultation on the Actuarial Standard Technical Memorandum 1 (AS TM1), proposing no significant amendments to the standard. Following its annual review, the FRC proposes only a minor wording amendment relating to fund volatility calculation dates, intended to clarify policy intent. The review considered changes in market volatility and return expectations over 2025 and concluded that the current accumulation rate assumptions and volatility parameters in AS TM1 remain appropriate. The consultation closes on 1 December 2025, with the final outcome expected to be published by 15 February 2026.

The Financial Reporting Council (FRC) has launched a consultation on proposed amendments to Technical Actuarial Standard (TAS) 310 to reflect recent legislation allowing multiple unrelated employers to share collective defined contribution (CDC) pension arrangements. The proposed TAS 310 version 1.1 introduces requirements on ‘actuarial equivalence’, providing actuaries with a framework to ensure fairness between participating employers in multi-employer schemes. The consultation follows legislative changes intended to make CDC pension schemes more accessible to UK workers by allowing unconnected employers to participate in shared arrangements. The consultation closes on 23 March 2026, with the revised standard expected to come into force on 31 July 2026, coinciding with the commencement of the new regime for unconnected multi-employer schemes.

Law360: On 9 December 2024 the Financial Reporting Council (FRC) launched a consultation proposing a series of revisions to the actuarial rules used in the defined benefit (DB) pensions sector to reflect recent changes in DB pension scheme funding legislation as well as the improved funding levels of these schemes.

Law360: The Financial Reporting Council (FRC) proposed on 11 November 2024 that it will drop references to the 'environment and society' in its standardised definition of stewardship for investors, as one of a range of suggested changes aimed at supporting economic growth and transparency.

Law360: The Financial Reporting Council (FRC) published its updated 2026 UK Stewardship Code on 3 June 2025, pruning back the reporting burden by between 20% and 30% for many large asset managers and investment groups.

Law360: On 22 July 2024 the Financial Reporting Council (FRC) unveiled immediate changes to the UK Stewardship Code process and committed to five priority areas of review as it continues its revision of the Code that it said would help reduce the reporting burden for investors.

The Financial Reporting Council (FRC) has issued finalised guidance to support pension scheme actuaries providing retrospective confirmation to validate historic amendments to pension scheme rules under sections 102 and 106 of the Pension Schemes Act 2026. The guidance follows Royal Assent of the Pension Schemes Act on 29 April 2026 and addresses uncertainty arising from the Virgin Media v NTL Pension Trustees judgment.

The Financial Reporting Council (FRC) has finalised amendments to the FRS 101 Reduced Disclosure Framework, following its December 2024 consultation. The changes aim to ensure that FRS 101 continues to facilitate streamlined group reporting and provide cost-effective disclosure reductions for qualifying entities. The amendments reflect recent developments in the International Financial Reporting Standards (IFRS), notably exemptions from the new disclosure requirements in IFRS 18 ‘Presentation and Disclosure in Financial Statements’. The FRC also confirmed that FRS 101 cannot be applied alongside IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’.

The Financial Reporting Council (FRC) has imposed sanctions against Grant Thornton UK LLP (“GT”) and David Newstead, Audit Engagement Partner, in relation to their audit of Patisserie Holdings Plc for the financial years ending 30 September in 2015 to 2017. In October 2018, Patisserie Holdings Plc announced that its board was notified of potentially fraudulent accounting irregularities and entered into administration. GT and Newstead accepted failures in revenue, cash, journals and fixed asset additions, having breached Relevant Requirements across all four areas over the three year period showing serious lapses in professional judgement, scepticism, evidence gathering and documentation.

The Financial Reporting Council (FRC) has issued a Financial Decision Notice on, and imposed sanctions against, UHY Hacker Young LLP, and Audit Engagement Partner, Julie Zhuge Wilson, following a statutory audit of Kenneth Kajang Rubber plc’s 2016 financial statements. The notice and sanctions come from several failures, such as a general failure to prepare sufficient audit documentation, to obtain appropriate audit evidence and a lack of professional scepticism. Both parties received a severe reprimand and a declaration that the financial statement audit report did not satisfy the relevant requirements.

The Financial Reporting Council (FRC) has issued Amendments to FRS 101 Reduced Disclosure Framework – 2025/26 cycle, concluding its latest annual review of FRS 101 Reduced Disclosure Framework. Following consultation through Financial Reporting Exposure Draft (FRED) 88, which proposed no amendments after considering developments in IFRS Accounting Standards during the relevant year, the FRC has confirmed that no changes will be made to FRS 101 in respect of new IFRS pronouncements. However, limited drafting changes have been introduced to improve clarity, better articulate certain aspects of FRS 101, and ensure consistency with Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro entities Regime – Adapted formats, issued in February 2026. These include targeted amendments to paragraph 7, Application Guidance paragraph AG1 and Appendix II paragraph A2.9A, as well as updates to the Basis for Conclusions to reflect decisions on recent IFRS developments, including Contracts Referencing Nature dependent Electricity and IFRS 19, without altering existing disclosure exemption requirements.

The Financial Reporting Council (FRC) has issued a Final Settlement Decision Notice and imposed sanctions against KPMG LLP and Anthony Sykes, the Audit Engagement Partner as well as a former partner of KPMG, for their role in the audit of the financial statements of TheWorks.co.uk plc for the financial year ended 26 April 2020. KPMG was given a financial sanction of £1,750,000, reduced to £1,023,750, while Sykes was given a financial sanction of £75,000, reduced to £43,875. Both KPMG and Sykes have also been sanctioned with a published statement, in the form of a severe reprimand, and a declaration that the Audit report signed on behalf of the firm and Sykes did not satisfy the relevant requirements. KMPG was also given an order requiring the firm to take action to mitigate the effect or prevent the recurrence of breaches. The breaches involved included failures relating to the audit of inventory existence, including the requirements to plan and perform an audit with professional scepticism, to prepare sufficient audit documentation and to design and perform audit procedures in order to obtain sufficient appropriate audit evidence.