The Financial Reporting Council (‘FRC’) has updated the UK Corporate Governance Code (‘Code’).
Although all companies can use the Code as a source of reference in establishing their corporate governance arrangements, compliance with the Code is a regulatory requirement for listed companies. By way of example, in the Handbook LR 9.8.6 requires statements to appear within a firm’s annual financial report on how it has complied with the Main Principles and whether or not it has complied with all relevant provisions in the Code – and if not then an explanation must be provided.
The FRC advise that companies with reporting periods beginning before 1 October 2014 should continue to report against the previous edition of the Code (2012), although they are encouraged to consider whether it would be beneficial to adopt some or all of the new provisions in the revised Code.
