Response to audit and corporate governance proposals

Matthew Fell, CBI UK Chief Policy Director:

“The UK’s reputation as a world leader on corporate governance is highly-prized and a vital part of what makes the UK an attractive place to invest and do business.

“Yet high profile failures in recent years make a compelling case for evolving the UK’s corporate governance and audit regime.

“The new audit and company reporting regulator, and a new audit profession should inject focus and momentum behind efforts to maintain the highest possible standards.

“Furthermore, an increasing emphasis on non-financial information, especially climate, will help provide a rounded view of firms’ performance; underscoring efforts to build back better.

“But many businesses are still to be convinced that mandating shared audits will get to the heart of the issues around rigour and quality, not just add complexity.

“It’s welcome that the Government has thought carefully about directors’ accountability, rather than simply copying the more burdensome aspects of the US-style regime. Nonetheless these measures will require careful implementation to be meaningful without stifling entrepreneurial spirits.”