Business secretary Greg Clark has launched an independent review of the role of accounting watchdog Financial Reporting Council, over concerns that it “lacks teeth”.
A “root and branch review” of the UK’s accounting and finance regulator is to be led by former Treasury head Sir John Kingman. The Financial Reporting Council (FRC) will have its governance, impact and powers assessed during 2018, following a series of criticisms about its performance. Its role in overseeing top accountants and auditors has faced intense scrutiny post-banking crisis, with KPMG cleared by the FRC from requiring a tribunal for its role as auditor of collapsed bank HBOS. Most recently, MPs have questioned the regulatory regime in light of "clean bills of health" for Carillion by accounting advisers prior to its collapse. The independent review, to be completed by the end of 2018, will include a consultation a