LONDON (Reuters) - Britain’s accounting watchdog has commissioned an independent review to see if it needs more teeth to deter wrongdoing.
The Financial Reporting Council polices auditing of companies, actuaries, and corporate governance codes applied by directors.
“The review will consider matters such as whether the reasons for imposing sanctions set out in its guidance and policies remain appropriate ... and whether the financial penalty sanctions, in particular, are adequate to safeguard the public interest and deter wrongdoing,” the FRC said in a statement.
“The independent panel will in due course issue a call for evidence and seek evidence from a range of relevant organisations and individuals. Further announcements will follow as the review progresses.”
The review follows calls from the FRC last month for more powers to punish company directors caught up in financial reporting breaches.
The FRC’s existing powers mean it can only ban or fine company executives who are trained accountants or actuaries belonging to professional bodies. It would be up to the government to bolster the watchdog’s powers.
The review will be conducted by an independent panel chaired by former Court of Appeal Judge, Christopher Clarke.
Reporting by Huw Jones, editing by David Evans