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Richard Moriarty, Chief Executive of the FRC

As we begin 2026, I want to set out for our stakeholders what the FRC will focus on this year. Our core purpose remains to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work.

Our activity this year will continue to pursue the five priorities for supporting economic growth which I previously outlined in a letter the Secretary of State for Business and Trade:

• underpinning investor confidence in UK plc
• reducing unnecessary burdens on business while maintaining high standards
• developing deep insight into the markets we oversee so our regulation is based on evidence and expertise
• identifying future trends and innovations to support the health of the markets we oversee
• supporting the skills and resilience of the professions we regulate

This approach will continue to create a regulatory environment that supports growth in the UK by strengthening investor confidence through high-quality audits of well-prepared accounts and transparent reporting, enabling well run companies to access the capital they need to grow and create jobs.

We welcome the Government’s renewed commitment to putting the FRC on a statutory footing, as set out in the Minister for Small Business and Economic Transformation’s recent letter. The FRC today has changed significantly over the past decade and we welcome the confidence shown in our progress and approach. That said, we are not complacent, we recognise that we need to continue to evolve to ensure we remain fit for the future.

We are committed to working with all of our stakeholders to support the Government’s ambition to reduce administrative burdens for business. We have already reduced guidance associated with the UK Corporate Governance Code by 20 per cent, and our updated Stewardship Code could see reporting reduced by up to 30 per cent. In 2026 we will continue to look for opportunities to ensure our work is as proportionate and effective to remove unnecessary reporting or regulatory burden. We look forward to engaging with those that have an interest in this ambition.

We will make significant progress on our Future of Audit Supervision Strategy and End-to-End Enforcement Review, working closely with stakeholders to develop a more proportionate, system-focused approach as we modernise our audit regulation activity.

In support of small and medium-sized enterprises, the engines of economic and employment growth across the UK, we will publish final guidance in the coming months to help auditors deliver work scaled appropriately to the complexity of smaller businesses, and we will work with the Recognised Supervisory Bodies to ensure a consistent, proportionate approach to regulation of this sector of the audit market.

And our newly launched Innovation and Improvement Hub will continue its work on key priorities including exploring how artificial intelligence might shape the future of audit, and working collaboratively with companies to reduce the length of annual reports.

This is just a small part of what lies ahead for the FRC in the coming year. Our draft Plan and Budget for 2026-27 is currently out for consultation and I encourage stakeholders to share their views.

We look forward to continuing our close engagement with all our stakeholders throughout 2026 to deliver a proportionate regulatory environment that upholds public trust and enables UK businesses to thrive.