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UKSA working with the FRC
The Financial Reporting Council (FRC) — a body of great importance for all private investors — has launched a new initiative to improve the quality of information made available to company owners — ie their shareholders. "Investors are not getting the value they should" said Stephen Haddrill, FRC CEO.
Information about the 'Lab' can be found at https://www.frc.org.uk/Our-Work/Corporate-Governance-Reporting/Our-Work-.... Its purpose is to explore innovation in reporting for the benefit of investors.
Eric Chalker, the sole representative of private shareholders present at the launch, on October 14, complimented the FRC on its initiative, but also asked the Lab to focus on the boardroom, from where reports to shareholders should come. He observed, in respect of strategy, business model and risk in particular, that there was room to ask whether even directors sufficiently understand what it is that they are reporting, which scepticism was given vocal support by one of the four panel speakers.
UKSA is establishing a small committee to act as a sounding board to which the FRC will refer its proposals as they emerge, but there will also be opportunities to consult the wider membership. More information will appear in the next issue of The Private Investor. This is just one of several ways in which UKSA is working with the FRC, increasing our members' influence.