An expanded role for auditors in governance

How much more work should auditors do for quoted companies? How comfortable are shareholders with the potential for further dilution of the independence of the annual audit? We don’t have the answers immediately to hand, but responses to the Federation of European Accountants’ (FEE) latest discussion paper on the potential role of auditor’s assurance in respect of corporate governance More…

When Auditors Quit: what should shareholders know?

In the UK legal landscape, the role of the auditor has a particularly important and specific role – not to aid efficient trading markets – but to support the stewardship of the company. With the increased regulatory focus on the role of shareholders in the stewardship process it is particularly apt timing that the UK’s Department of Business, Innovation & Skills More…

FRC to consult on Stewardship Code

The Financial Reporting Council has welcomed the recommendations of The Walker Report and confirmed its committment taking ownership of the proposed Stewardship Code, subject to consultation.

The FRC is set to issue a report on its own review of the impact and effectiveness of the Combined Code in early December, together with a draft revised Code which will More…

UK - shareholders to get independent Stewardship Code

There’s no small irony that Lloyds Banking Group will be asking 2.8 million private shareholders to back its £13.5 billion fundraising, the biggest deal of its kind in UK history, on the same day that Sir David Walker makes his final recommendations to Her Majesty’s Government on how the governance of the UK financial sector governance should More…

US pension fund adds to credit rating agency woes

Five of Ohio’s public pension funds have joined California in pursuit of recompense from the three dominant credit ratings agencies (CRAs), Standard & Poor’s, Moody’s and Fitch. Ohio’s Attorney General, Richard Cordray estimates that the five funds involved in the case lost more than $457 million from investing in triple-A rated in mortgaged backed securities.

In court documents More…