The Financial Reporting Council (FRC) has issued a Staff Guidance Note detailing the impact of recent UK Listing Rules (UKLR) revisions on reporting accountants. The guidance clarifies how the removal of mandatory assurance requirements for certain corporate transactions affects ethical and regulatory obligations within financial reporting.
Key Changes in the UK Listing Rules:
No Mandatory Assurance: Companies are no longer required to obtain independent assurance for significant transaction announcements.
Investment Circulars No Longer Required: Firms do not need to issue investment circulars or seek reporting accountant opinions on financial data.
Ethical Considerations Remain: Voluntary assurance engagements are still permitted but are now subject to the non-audit service fee cap under the FRC’s Ethical Standard.
SIRs Usage Clarified: The Standards for Investment Reporting (SIRs) may be used voluntarily but are no longer legally mandated.
FRC’s Ethical and Regulatory Compliance Guidelines
Ongoing Engagements: Reporting accountants must comply with the ethical framework in place when engagements begin, even if listing rules change.
Voluntary Assurance: Previously required engagements are still allowed under the Ethical Standard but with new limitations.
Future Revisions: The FRC is reviewing potential updates to SIRs, aligning them with FCA consultations on the Prospectus Rules.
Impact on Financial Reporting & Next Steps
The FRC advises reporting accountants to assess all engagements carefully under the new UK Listing Rules and ensure full compliance with ethical and regulatory standards. The FRC will continue monitoring regulatory updates and provide further guidance as needed.
Why It Matters for Reporting Accountants & Financial Professionals
The updated UK Listing Rules significantly impact how financial information is disclosed in corporate transactions, shifting responsibility away from mandatory assurance. Financial professionals, accountants, and auditors must stay informed to align their practices with the evolving regulatory landscape.
To find out more details please visit : https://www.frc.org.uk/