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08 January 2018
The Financial Reporting Council has published for consultation its review of the UK Corporate Governance Code. This follows a fundamental review, with the proposed revised Code being a slim shadow of its former self (13 pages instead of 32). The FRC describes the result as "shortened and sharpened" but the outcome isn't radical, with the concepts of the unitary board and the "comply or explain" approach being retained. The revised Code builds on the Government's conclusions announced in August following its consultation on Corporate Governance Reform but also on a variety of other sources including the BEIS select committee report from earlier this year and the FRC's own 2016 report on corporate culture. There may also be a hint of influence from the Investment Association's agenda in there as well. Since this is a remuneration and benefits blog, we'll concentrate on those aspects of the new Code in this post.
Unsurprisingly, the FRC has included everything that the Government asked it to (we've included the references in case readers want to find the relevant bits in the revised Code):
There are also a few other interesting changes:
Responses to the consultation need to be in by 2th February 2018 with the final revised Code being published in early Summer 2018 and coming into force for accounting periods beginning on or after 1st January 2019.
For further information on this topic please contact Liz Pierson at Squire Patton Boggs' London office by telephone (+44 207 655 1000) or email (email@example.com). Alternatively, please contact Lawrence Green at Squire Patton Boggs' Bimingham office by telephone (+44 121 222 3000) or email (firstname.lastname@example.org). The Squire Patton Boggs website can be accessed at www.squirepattonboggs.com.
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