UK Corporate Governance Reform

Preparing for the Recent Changes to the UK Corporate Governance Code.

The Financial Reporting Council (FRC) has issued the final updates to the 2024 UK Corporate Governance Code following a 12-week consultation period. The initiative is part of the 'Restoring Trust in Audit and Corporate Governance' reform package and is the first major update to the Code since 2018. As reported in November 2023’s FRC Policy Update, after receiving feedback, much of the existing Code remains the same.

This includes the principle of the Board’s ability to “comply or explain” and applies to premium listed companies (PLCs) listed within the commercial companies category or the closed-ended investment funds category, whether incorporated in the UK or elsewhere. Most of the updates will take effect from 1 January 2025. Only Provision 29 of Section 4, which pertains to the enhanced responsibility of boards in overseeing risk management and internal controls, will become applicable from 1 January 2026.

Helping you plan, prepare for, and deliver efficient, effective and sustainable compliance

Expert Guidance on Audit and Risk Management on developing and implementing effective risk management programmes, as well as establishing internal control frameworks with defined accountability across the three lines of defence. We can help you identify, manage, and mitigate material financial, operational, reporting and compliance risks, ensuring your organisation is well-prepared to meet the new disclosure requirements for Director’s Annual Internal Control Declaration.

Streamlining Processes and Controls with AI, automation & Analytics to enhance risk assessment and automate control operation. Our innovative solutions can help you gain real-time insights, improve efficiency, and reduce errors in your internal control and risk management processes. This can not only help you comply with the new proposed Code requirements but also drive operational excellence.

Tailored Controls and Programme Strategies - We understand that every organisation is unique. That's why we offer tailored solutions to meet your specific needs. We can use our suite of tailored risks, controls, and technology accelerators to fit your organisation to then help you design optimised controls and develop a comprehensive programme strategy that aligns with your objectives.

Key Questions to Consider Now:

Are You Listed or Plan to Be?

Is your company currently listed or plan to do so?

Are You Prepared?

Are you prepared for the potential requirements of the upcoming UK Corporate Reform (e.g., Do you have an internal controls framework in place)? If yes, does it cover your material risks that impact your operations, , technology, compliance, and financial reporting objectives?

Any Past Issues Identified?

Were there any past instances of fraud, financial statement errors or restatements or other significant audit issues identified?

Have You Embraced Automation and AI?

Is your Internal Controls framework future proofed to meet the everchanging business requirements?

Are You Utilising Technology?

Are you leveraging data, technology, AI & automation to manage your internal controls programme?

Are There Any Major Change Programmes?

Are there any planned or ongoing changes that have a long-term impact on the business? Do these programmes consider internal controls in the target future state?

Do You Have an Evaluation Process?

Do you have a process in place to routinely evaluate operational effectiveness of your internal controls?

Do You Have the Right Team?

Do you have the skills and resources to address the requirements of the upcoming internal control reforms?

We are global leaders in internal controls and financial reporting compliance

Our approach

Our global network of Internal Control specialists continually monitor developments and changes within the Controls landscape. We listen, and our experts can help you plan for the impending regulation.

We are global leaders in internal controls and financial reporting compliance

Key partners

We partner with leading software companies to provide direction to automate and streamline your internal controls framework to deliver a future proofed approach with efficiency and reduced cost of compliance.