In June last year the FRC became the UK’s competent authority for the regulation of statutory audit, including enforcement. As such it investigates and enforces against audit firms and individual auditors for breaches in relation to audits of public interest entities, credit institutions and insurance companies.
Following stakeholder feedback, the FRC has set-up an independent panel to consider the decisions.
The panel will consider, according to the regulator; whether the reasons for imposing sanctions set out in its guidance and policies remain appropriate; the fairness and the effectiveness of the range of sanctions available under the enforcement procedures; and whether the financial penalty sanctions, in particular, are adequate to safeguard the public interest and deter wrongdoing.
It will be chaired by former Court of Appeal judge, Sir Christopher Clarke. The other two members of the three-man panel are former CEO of Legal & General Investment Management, Peter Chambers and previous chair of the Regulatory Decisions Committee of the Financial Conduct Authority, Andrew Long.
Last week it was revealed that the FRC had launched an internal investigation after one of its members leaked a confidential judgement against a Big Four firm to the press ahead of the hearing.