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The Quoted Companies Alliance (QCA) Corporate Governance Code has undergone crucial updates for 2023, effective from 1st April 2024. Our new blog delves into these changes, focusing on corporate purpose, ESG impacts, risk management, board structure, and stakeholder communications. Find out more below. #CorporateGovernance #QCACodeUpdates #B2B

The FRC has now published the 2024 UK Corporate Governance Code (Code). As expected, the main change relates to internal controls. The existing expectations in the Code, for the board to monitor and review the effectiveness of the company’s risk management and internal framework covering all material controls, remain.  The FRC is now asking boards to explain through a declaration how they have done this and include a statement on effectiveness of material controls as at the balance sheet date. Whilst the FRC has set out that it is for the board to determine what comprise of ‘material controls’, in the UK Corporate Governance Code 2024 mythbuster, the FRC notes that the related provision in the Code is asking companies ‘to take a view on the effectiveness of the controls most material to the long-term sustainability of their company’. The Code also introduces a new Principle focused on outcome-based reporting. This is expected to help provide further insights on the impact of board decisions, governance practices and avoid boiler plate reporting. Guidance on the Code is expected on 29 Jan 2024 which is expected to provide further clarity on the scope of the changes. https://lnkd.in/ddZw5S4M

The long awaited revision to the UK Corporate Governance Code! The key changes relate to Internal Controls, where listed companies and those which apply the Code require to declare in their annual report and accounts how the Board has monitored the company’s risk management and internal control framework, and carried out an annual (or more frequent) review of its effectiveness.  The internal controls provisions require to be applied for financial years beginning on or after 1 January 2026. We can help you on your internal controls journey - please get in touch #FRC #UKCorporateGovernanceCode #RiskandGovernance #InternalControls #RSMUK

Exciting News! 🚀 The FRC has just released the updated UK Corporate Governance Code, and there's a key focus on Internal Controls. 🔄 Recognizing the vital role of good corporate governance and responding to stakeholder feedback, the FRC has made significant revisions to the Code, particularly in the realm of Internal Controls. 📅 Effective from January 1, 2025, the updated Code emphasizes the importance of Boards in developing their approaches to Internal Controls. To provide Boards with ample time, the Board declaration expectation for this aspect will be in effect from January 1, 2026, one year after the rest of the Code. 🔍 Here's a snapshot of the new internal control provision in the Code: 🔄 The board will monitor the company’s risk management and internal control framework, conducting an annual review of its effectiveness. 📊 The monitoring and review will encompass all material controls, covering financial, operational, reporting, and compliance controls. 📝 In the annual report, the board will share: A description of how it has monitored and reviewed the framework's effectiveness. A declaration of the material controls' effectiveness as of the balance sheet date. A description of any material controls that haven't operated effectively as of the balance sheet date, along with the actions taken or proposed for improvement and any measures addressing previously reported issues. Stay tuned for these exciting developments in corporate governance! 🌐 #CorporateGovernance #FRC #InternalControls #BoardLeadership Summary: https://lnkd.in/ecjKEqkT

Internal controls are the white blood cells for your business! They increase the immunity and protect your business from threats and adverse events by minimising likelihood and impact

A new draft 5th Edition ASX Corporate Governance Principles & Recommendations has been released for public consultation. While ASX listed companies are required to report against the Principles annually, the Principles play a broader role serving as the high-watermark for governance practice for all Australian organisations. In this article, I take a look at the key changes proposed in the 5th Edition: https://lnkd.in/gvTCPSM6 The Australian Institute of Company Directors has been engaging closely on these drafting changes over recent months, together with other business and investor groups on the ASX Corporate Governance Council. The updates elevate a focus on organisations' stakeholders, material risk management, board and workforce diversity as well as accountability and transparency measures for poor corporate conduct.

The FRC has just published the 2024 Corporate Governance Code. It's effective effective date is 1 January 2025 apart from provision 29 about monitoring the company's risk management and internal control framework which is effective from 1 January 2026. Companies face the challenge of defining "material" controls, spanning financial, operational, compliance, and reporting aspects. The focus is on transparency and responsible governance, urging a shift from box ticking to considered explanations. Directors must now disclose the basis for their control effectiveness declaration, emphasizing internal monitoring and assurance.

📣 The FRC has published the new UK Corporate Governance Code! Check out the revisions here: https://lnkd.in/dRj8yDdd In a move to promote smarter regulation, the FRC has kept changes to the Code to the minimum necessary. The new Code aims to balance underpinning trust and confidence in UK plc for investors and others while keeping burdens on businesses to the minimum. The FRC has prioritised revisions to the Code in one significant area - Internal Controls. The existing expectations in the Code will remain, with the main substantive change being Boards' declaration in their Annual Reports of how they have monitored and reviewed the company's risk management and internal control framework. Stakeholder support for good corporate governance has been a focus for the FRC. Earlier proposals for revisions related to audit committees, diversity and inclusion expectations, over-boarding provisions, and Committee Chairs’ engagement with shareholders have been dropped. The FRC's approach ensures that expectations for effective governance are targeted and proportionate, ultimately promoting trust and confidence in UK plc.

How to ensure good #corporategovernance 1. Recognise that good corporate governance is about balancing compliance with strategic oversight 2. Clarify the board’s role in strategy and risk management 3. Monitor corporate performance 4. Build a skills-based, diverse board 5. Appoint an effective, competent chairperson 6. Support equal voices for all board members 7. Build and maintain a strong corporate governance infrastructure  8. Ensure the directors have the information they need, when they need it 9. Encourage a culture of collaboration and accountability 10. Routinely evaluate the board’s performance https://lnkd.in/gFvYteij

The new ammendments are expected in the 2024 UK Corporate Governance Code: 1. the new principle (C): Governance reporting should focus on board decisions and their outcomes in the context of the company’s strategy and objectives. Where the board reports on departures from the Code’s provisions, it should provide a clear explanation [the effective date: 1 January 2025] 2. the new provision (29) The board should monitor the company’s risk management and internal control framework and, at least annually, carry out a review of its effectiveness. The monitoring and review should cover all material controls, including financial, operational, reporting and compliance controls. The board should provide in the annual report the following: (i) a description of how the board has monitored and reviewed the effectiveness of the framework; (ii) a declaration of effectiveness of the material controls as at the balance sheet date; and (iii) a description of any material controls which have not operated effectively as at the balance sheet date, the action taken, or proposed, to improve them and any action taken to address previously reported issues. [the effective date 1 January 2026] #FCA #corporategovernance #riskmanagement #internalcontrols #theboard #theUKcorporategovernancecodeammendments #2025ammendments #2026ammendments https://lnkd.in/dDgmeDkW