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In a recent post we suggested that the proposals to create the Audit, Reporting and Governance Authority (ARGA) would probably be put on ice.
Today, His Majesty opened Parliament and His Majesty's most gracious speech to both Houses of Parliament clarified the position. ARGA did not feature and no mention was made of wider corporate governance and audit reforms. A Football Governance Bill will be introduced and a new independent regulator for English football clubs will be established to address issues of financial sustainability and ensure fans' voices are listened to.
What is the King's Speech? The speech is written by the UK Government and contains an outline of its policies and proposed legislation for the new parliamentary session (which starts on 7 November 2023).
Further information: If you would like to discuss this development or corporate governance generally, please speak to your usual contact at Burges Salmon or contact Nick Graves, head of the firm's Corporate Group.
In response the FRC noted that "in His Majesty’s Speech to Parliament today the Government’s plan for primary legislation to modernise the regulation of audit, corporate reporting and governance has not been prioritised for the next Parliamentary session. Whilst disappointing, we are pleased that as recently as the 16th October the Government restated its continued commitment to reform and bringing forward legislation when Parliamentary time allows. There is broad stakeholder consensus that this reform continues to be necessary to restore investor and public trust following the very damaging collapse of several high-profile businesses including Carillion, BHS and Thomas Cook."
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