Core Viewpoint - The Financial Reporting Council (FRC) has launched the Innovation and Improvement Hub to foster collaboration among market participants, aiming to enhance regulatory support and promote economic growth [1][2]. Group 1: Objectives and Structure - The hub's primary objective is to provide stakeholders with alternative engagement methods for regulatory support, moving beyond traditional supervisory interactions [2]. - It is designed to facilitate discussions centered on mutual interests and to drive advancements within the sector [2]. - The initiative integrates various FRC programs, such as the Audit Sandbox and Scalebox, into a cohesive framework to improve stakeholder access to regulatory support [1]. Group 2: Key Focus Areas - For its initial phase, the FRC has identified three key areas of focus: the implications of AI for future auditing processes, collaboration with businesses to manage the complexity of annual reports, and strengthening cooperation among regulatory bodies for a unified regulatory approach [3]. Group 3: Commitment to Innovation - FRC CEO Richard Moriarty emphasized the role of regulators in encouraging improvement and innovation, stating that the hub provides a space for industry participants to experiment and discuss issues [4]. - The broader innovation agenda of the hub aligns with the FRC's efforts to reduce reporting requirements, including the updated UK Stewardship Code 2026, which introduces fewer principles for asset managers and more flexible reporting structures [5]. - The Scalebox program aims to assist smaller audit companies in enhancing their quality management systems, thereby improving their capabilities and providing insights into effective regulation for smaller entities in the Public Interest Entity market [5].