The existing expectations in the Code relating to Internal Controls will remain, centring on a review, at least annually, of the effectiveness of a company’s risk management and internal control framework, covering all material controls.
The main substantive change is asking Boards to explain through a declaration in their Annual Reports how they have done this and their conclusions.
The new Code expectation for the Board declaration will come into effect from 1 January 2026, one year after the rest of the updated Code comes into effect from 1 January 2025.
A small number of other more minor changes have been made including provisions on malus and clawback and audit committee minimum standards.
The FRC will publish digitally accessible guidance associated with the Code on 29 January 2024.
If you wish to discuss these changes or any other aspects of reporting, please get in touch enquiries@blacksun-global.com
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