Regulation

Audit watchdog frees up corporate governance code in bid to keep UK on top

City leaders welcome flexibility in new rules

'Frankly, a good explanation illustrates better governance more than a situation where a board defaults to compliance with a specific code provision'
'Frankly, a good explanation illustrates better governance more than a situation where a board defaults to compliance with a specific code provision' Photo: Alberto Pezzali/Getty Images

The UK's audit watchdog has continued a drive to free up UK corporate governance rules as the City of London fights to hold on to its position as a top financial hub.

Financial Reporting Council confirmed on 22 January that it is rolling back planned changes to the corporate governance code that would have placed more responsibility on boards to report on issues such as their ESG credentials and diversity and inclusion.

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