FRC publishes its fourth Annual Enforcement Review

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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. 

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