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07 December 2017

ICSA: The Governance Institute welcomes the proposed new UK Corporate Governance Code

ICSA: The Governance Institute has this week welcomed the Financial Reporting Council’s (“FRC”) plans to update the UK’s Corporate Governance Code so that it has a greater focus on the purpose of governance rather than on prescription.

The revised Code is shorter and more focused and follows on from the FRC’s Culture Report published in 2016. It focuses on the importance of long-term success and sustainability, and addresses issues of public trust in business, amongst other objectives.

Simon Osborne, Chief Executive of ICSA: The Governance Institute commented: “While there will no doubt be much debate on the detail, we strongly support the FRC’s aim of trimming back the Code.

“Companies must never make the mistake of overlooking the essentials, such as the need for the board to have the information and support necessary to operate effectively. However, it makes sense for the Code itself to be focused on the principles of good governance and the issues on which there is the most pressing need for attention, such as integrity, corporate culture and listening to stakeholders. ICSA’s recent guidance on how to get the stakeholder voice into the boardroom, produced jointly with the Investment Association, complements this new approach.

The revised Code which comes on the 25th anniversary of the first Corporate Governance Code in 1992, is built on an updated set of principles emphasising the value of good corporate governance to the sustainable growth of a company. The Consultation period on the new code is open until the 28th February 2018.

For further reading: 

FRC - A sharper UK Corporate Governance Code to achieve long-term success and trust in business

ICSA - Stakeholder voice in board decision making