FRC implements sanctions review recommendations

09 April 2018

The FRC is implementing the recommendations of the independent review of sanctions undertaken in 2017 and has published updated guidance for the Tribunal that hears FRC Enforcement cases involving auditors, accountants and actuaries.

The independent review of sanctions was undertaken by a panel chaired by former Court of Appeal Judge Sir Christopher Clarke. Its report of October 2017 made several key recommendations including:

• An increase in fines to £10 million or more for seriously poor audit work by a Big 4 firm.
• Exclusion from the accounting profession for a minimum of 10 years for dishonesty;
• Greater use of non-financial penalties;
• Sanctions that reflect the level of cooperation by respondents.

The FRC’s updated sanctions guidance will take effect on 1 June 2018.

Full press release

Accountancy Scheme Sanctions Guidance

Actuarial Scheme Sanctions Guidance

Audit Enforcement Procedure Sanctions Policy

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