L&G chief leads FRC inquiry; tax goes simple(ish); Carillion clears
Another day, another Daily Insight. And yet another government inquiry! Sir John Kingman, ex-Treasury and now chairman of insurance group Legal & General, will lead a "root and branch" probe into the accounting watchdog, the FRC.
At the heart of the investigation are the ways the Financial Reporting Council approaches conflicts of interests and transparency.
There will be a consultation, and Sir John will be supported by an advisory board that he'll convene.
Governance, impact and powers
But there's no rush. The probe, due for completion by the end of 2018, "will assess the FRC’s governance, impact and powers, to help ensure it is fit for the future", according to a government statement.
"The review aims to make the FRC the best in class for corporate governance and transparency, while helping it fulfil its role of safeguarding the UK’s leading business environment."
Business Secretary Greg Clark says: "The UK has a strong reputation as a dependable place to do business. But this needs to be continuously updated. And it’s important to ensure all of our regulators continue to drive high standards.
Regulators are fit for the future
"I am pleased to appoint Sir John, who has a rigorous approach to bring to bear in leading this comprehensive review of the Financial Reporting Council. This review is part of the government’s industrial strategy aim of creating a business environment that ensures our regulators are fit for the future and our markets are working for consumers."
So, from the FRC, it's over to the OTS. That's Office of Tax Simplification. Their latest report says the UK’s tax relief landscape boosts entrepreneurship, but the system is complicated and confusing.
“In consequence, not all businesses receive the support through the tax system that would enable them to flourish,” the report says.
Reduce red tape
The full extent of construction company Carillion's collapse is starting to become clear(er). The official receiver David Chapman says it had liabilities of £6,905,532,000 when it entered liquidation, rather than the £5bn reported.
And things may get worse... “as more certainty surrounding where liabilities lie and true liability for pension schemes in deficit become known”.
“This position is expected to change significantly as assets and debts are fully identified."
