The relationship between the Board of FRC Ltd, and the operating bodies is shown in our organisation chart.
Our functions are exercised principally by our operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Professional Oversight Board, the Financial Reporting Review Panel and the Accountancy Investigation and Discipline Board). The Committee on Corporate Governance, whose members are drawn from the Board, assists it in its work on corporate governance. The operating bodies are supported by the FRC’s professional staff (the "Executive").
The roles of our principal decision-making groups are as follows:
The Board:
- Determines our strategy and priorities.
- Sets our budget, secures the necessary funding and monitors expenditure.
- Makes appointments to the Board, the operating bodies and senior management.
- Oversees the delivery by each operating body of its functions through regular reports from the operating body chairs.
- Oversees the performance of the Executive through regular reports from the CEO.
- Approves any significant structural changes to the FRC.
- Monitors the Combined Code on Corporate Governance and approves any changes to the Code and related guidance
- Ensures that the FRC and its operating bodies achieve high levels of accountability and transparency.
- Undertakes an annual assessment of the risks to our success and oversees the necessary risk mitigation plan.
- Undertakes annual evaluation of its own performance, and that of its committees, against its objectives, including a review of the schedule of matters reserved to the Board.
The Chair and Deputy Chair are appointed by the Secretary of State for Business, Enterprise and Regulatory Reform.
The CEO is a member of the Board and has responsibility for the Executive, which provides support to the operating bodies.
The membership of the Board is shown here.
The Operating Bodies:
Make the regulatory decisions for which they are responsible in a way which has regard to our Regulatory Strategy and Plan & Budget.
- Keep under review any emerging risks or other matters which could affect those aspects of confidence in corporate reporting and governance which fall within their remits.
- Make appointments to working groups and committees, in consultation, where appropriate, with the Chair of the FRC.
- Undertake annual evaluations of their own performance and that of their sub-committees.
Details of the membership and work of the individual operating bodies are accessible by clicking below:
Accounting Standards Board
Auditing Practices Board
The Board for Actuarial Standards
Professional Oversight Board
Financial Reporting Review Panel
Accountancy and Actuarial Discipline Board
The Committee on Corporate Governance
The Committee on Corporate Governance leads the FRC's work on corporate governance, supported by the Corporate Governance Unit.The Committee’s terms of reference are:
- To keep under review developments in corporate governance generally, reflecting the FRC’s objective of fostering high standards of corporate governance; to undertake reviews, either directly or by overseeing the work of others, and then to consider whether any actions by the FRC would be desirable; and to put proposals to the Board where appropriate.
- To monitor the operation of the Combined Code on Corporate Governance and its implementation by listed companies and shareholders.
- Where significant doubts are raised about the appropriate interpretation of part of the Code, to consider the case for issuing a clarification, and if appropriate to do so, after any suitable consultation.
