FRC publishes its fourth Annual Enforcement Review
29 Jul, 2022
The Financial Reporting Council (FRC) has published its fourth Annual Enforcement Review.
The review reveals that a record number of cases were resolved in the current year (13) with record financial sanctions being imposed for misconduct and breaches of standards (£46.5 million, up from £16.5 million in 2020/21). This increase reflects the seriousness and high number of cases concluded, along with the FRC’s growing capability to take on the large and complex cases. The FRC’s Enforcement Division headcount has grown by 23% in the last year to support this growth.
The review also highlights a continuing focus on non-financial sanctions which focus on tackling the underlying causes of failure in order to reduce the risk of recurrence. The vast majority of concluded cases featured a lack of sufficient audit evidence and a lack of professional scepticism.
The press release and Annual Enforcement Review are available from the FRC website.
