A slice of the PIE

Good news for those concerned that the audit market is not as diverse as it should be. The Financial Reporting Council’s (FRC) latest report shows that a greater share of “public interest entities” (PIE) audit work is going to non-Big Four firms.

In fact, firms outside the Big Four collected 40% of PIE audits in 2024, up from 39% the previous year, not a massive leap but inching in the right direction.

That said, Big Four firms still dominate the share of audit fees—98% of income from FTSE 350 companies.

Among the larger audit firms though, it was RSM, an up-and-coming firm not admitted to the club of four, that saw the largest audit income growth of 17%—not to be sniffed at.

According to Richard Moriarty, the FRC’s chief executive: “A well functioning audit market is essential for maintaining confidence in UK plc and enabling businesses to attract the capital they need to grow.

“While we’ve seen encouraging progress, with non-Big Four firms now conducting 40% of PIE audits, achieving a resilient audit market requires collective action from all stakeholders—audit firms, companies and regulators alike.” Hmm, some work to be done then.

Gongs for good governance

British Columbia Investment Management Corporation has taken top honours in awards rewarding asset owners and managers for its stewardship and focus on corporate governance.

British Columbia was named winner this week by the International Corporate Governance Network (ICGN), in a category that rewards asset owners with more than £60bn.

In the category for asset managers with more than £60bn, the prize went to Nordea Asset Management.

The Lifetime Achievement Award went to David Pitt-Watson, a former fund manager and now a visiting fellow at Judge Business School, for his work on defining the purpose of finance and responsible business.

Anne-Marie Jourdan, chair of the judging panel, congratulated the winners: “Their work in governance, stewardship and reporting stands out in a fast-changing policy landscape.”

In pursuit of sustainability transparency

Some might say this is a bit overdue, but it’s happening: the Financial Conduct Authority (FCA) is pushing ahead with a scheme to regulate the ESG ratings providers.

Yes, in an age when regulation is considered by the chancellor a “boot on the neck of business”, some new rules are under way.

The proposed regs will increase transparency, allow comparisons, improve governance and help manage conflicts of interest, according to the FCA.

Sacha Sadan, director of sustainable finance at the FCA, said: “This will enhance the UK’s reputation as a global sustainable finance hub—attracting investment and supporting growth and innovation.”

Slowly, slowly, catchee money?

We’ve all heard it, some of us may even have been through it: what’s the new leader going to do in their first 100 days? It’s cliche as old as accounting but it has a grip on the business world.

Headhunting firm Russell Reynolds states that the 100-day sprint “offers simplicity in a complex moment” while the “reality of leadership is slower and deeper”.

No argument here. Russell Reynolds suggests that smart boards ask not what the CEO has achieved in 100 days but what they’ve “learned”.

“Treating the 100-day mark as a finish line creates false closure. The more useful approach is to invest in structured support through the whole transition period (a CEO’s first 12-18 months).

“This is what will lead to pacing, reflection and long-term leadership maturity, allowing your organisation to gain years of lasting impact, not 100 days of activity.” The slow business movement is here. Let’s hope it can keep up with AI.