Jessica Fino 2 Nov 2018 11:23am

Stephen Haddrill to leave FRC next year

The Financial Reporting Council (FRC) has today confirmed its chief executive Stephen Haddrill will leave his post late next year

The announcement follows earlier reports that the CEO, who had led the audit watchdog since 2009, was due to step down.

The regulator has come under intense scrutiny this year. In April the government launched an independent “root and branch” review of the FRC, led by Sir John Kingman.

The watchdog was criticised for failing to spot trouble at Carillion and its auditors. At a hearing in front of the Department for Business, Energy and Industrial Strategy and Work and Pensions Committees, MPs said the FRC had been “useless” when it came to Carillion and was “toothless” and “ineffective” as a regulator.

Today, the FRC said Haddrill would leave in “late 2019”, but the exact date would depend on a number of factors, including the outcome of the Kingman review, the search for a successor, and any agreed transition period associated with that appointment.

Haddrill said, “I am incredibly proud to have led the FRC for nearly nine years. However, I believe that it should be the job of a new CEO to lead the FRC when the way ahead is decided.

“In the meantime, I remain fully committed to taking forward the FRC’s important programmes on audit reform, investor stewardship, corporate reporting and preparing the FRC for EU exit.”

Sir Win Bischoff, the FRC’s chairman thanked Haddrill “for his leadership and commitment over this significant period in our history”.

Vernon Soare, ICAEW’s chief operating officer, said, "Stephen has led the FRC with integrity and professionalism for almost a decade, through a time of significant challenge in audit and corporate governance – and the role of regulators. He deserves great credit for his personal contribution over that period, both in the UK and internationally."