The House of Commons and the House of Lords have both gave their parliamentary approval to plans for reform, proposed by the accounting regulator.
As part of the plans, the Financial Reporting Council will be able to operate as a unified regulatory body with enhanced independence from those it seeks to regulate and with more proportionate sanctions.
It has also been announced, as part of the proposals, that from the beginning of July, the strategic direction of key decisions and standards, as well as how the organisation will discharge its responsibilities will be undertaken by the FRC board.
As part of the plans, the board will be supported by the Codes and Standards Committee (CSC); a conduct committee and an executive committee.
In relation to codes, standard setting and policy questions the FRC will be advised by three councils responsible for Accounting, Actuarial and Audit & Assurance matters.
Following the approval, FRC chair, Baroness Hogg, said: “We are pleased that we can now proceed on the basis of our reformed powers. The reforms will further enable the FRC to use its wide ranging expertise to strengthen the UK voice in international debates on corporate governance and reporting.
“As we’ve made clear throughout the consultation process, these reforms have represented the close and productive dialogue with a wide range of stakeholders to support our core mission of promoting high quality corporate governance and reporting in the UK to help foster investment.”
As an accountant, Nigel Fry, specialises within the audit and accounting sector.