Five Key Priorities:
- Investor Confidence – Strengthen trust in UK markets through high standards of corporate governance, high-quality audits and transparent reporting.
- Reducing Burdens – Streamline regulatory requirements while maintaining standards; recent changes include a 20% reduction in Corporate Governance Code guidance and a potential 30% reduction in reporting as a result of the updated Stewardship Code.
- Evidence-Based Regulation – Enhance market insights to ensure regulation is informed and effective.
- Future Trends & Innovation – Explore emerging technologies, including AI, and reduce annual report length through the Innovation and Improvement Hub.
- Skills & Resilience – Support professional development across regulated sectors.
Strategic Initiatives:
- Progress on the Future of Audit Supervision Strategy and End-to-End Enforcement Review to modernise audit regulation.
- Publish guidance for auditors of small and medium-sized enterprises (SMEs) to ensure proportionate, scalable practices.
- Collaborate with stakeholders to reduce administrative burdens and maintain a proportionate regulatory environment.
Regulator Reform: The FRC welcomes the Government’s commitment to place it on a statutory footing, reinforcing confidence in its evolving role, with the stated intention to call this the Corporate Reporting Authority (CRA)
Next Steps: The FRC’s draft Plan and Budget for 2026–27 is open for consultation, with continued stakeholder engagement planned throughout the year.
The FRC will remain committed to working collaboratively with all stakeholders to deliver a regulatory framework that is proportionate, forward-looking, and rooted in public trust. By focusing on innovation, reducing unnecessary burdens, and strengthening confidence in UK markets, the FRC will continue to play a vital role in enabling businesses to thrive and contribute to sustainable economic growth throughout 2026 and beyond.
See the full FRC statement here: FRC CEO sets out focus for 2026
The FRC also announced their schedule for 2026 consultation windows aimed at providing stakeholders with a consistent timeline for providing feedback on regulatory developments, with consultations to be issued in March, June, September and December. See the announcement here.