UK’s FRC sets out priorities in 2026–27 budget

Core Insights - The UK's Financial Reporting Council (FRC) has released its Plan and Budget for 2026–27, focusing on maintaining high standards in audit, corporate reporting, and governance to support economic growth [1][4] - The total budget for 2026–27 is set at £73.3 million, reflecting a 1.36% increase from the previous year [1] Group 1: Audit Supervision and Enforcement - A new Audit Supervision Approach will be implemented, emphasizing a risk-focused and proportionate supervisory activity across the audit market [2] - An end-to-end enforcement review will be introduced to enhance case handling efficiency, including an accelerated procedure and early admissions process [2] Group 2: Corporate Governance and Stewardship - The year 2026–27 marks the first full reporting cycle under provision 29 of the UK Corporate Governance Code [3] - It is also a transition year for the revised UK Stewardship Code, with signatories managing £56.4 trillion ($74.7 trillion) in assets [3] Group 3: Support for Smaller Entities and Sustainability - The FRC will continue to focus on smaller entities, supporting SMEs and promoting new approaches through its Innovation and Improvement Hub [3] - A voluntary sustainability assurance provider registration framework will be established [4] Group 4: Staffing and Strategic Goals - The FRC's staffing levels will remain unchanged at 480 employees [4] - The FRC's CEO emphasized the plan's role in fostering an environment conducive to UK economic growth and enhancing investor confidence in corporate governance standards [4]