Gail Boag – CEO of ICAS

The accounting body’s CEO, Gail Boag, described the decision as “deeply frustrating” highlighting that both the accountancy sector and government bodies have agreed for years that regulatory overhaul is essential.

“There was recognition that better corporate governance could not only support investor confidence and therefore business growth, but also that more must be done to protect the wider impacts of corporate collapse on the public,” said Ms Boag. She cited high-profile collapses such as Carillion, BHS, and Patisserie Valerie as evidence of the urgent need for legislation. These failures resulted in significant job losses and the devaluation of pensions, demonstrating the tangible dangers of inadequate governance frameworks.

Ms Boag continued: “There is no doubt that recent improvements and work across the sector and by the FRC have moved us on from where we were, and that the quality of audit and of corporate governance has improved.

“However, the issue of director accountability remains far from resolved, and there is an urgent need to clarify the scope of the FRC’s role and powers.

“Through our advocacy and regulatory work, we will continue our efforts to increase business confidence and growth, whilst also protecting consumers and the public.”