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The British Minister has discarded more strict audit rules of private companies, as the government is trying to recede regulations to promote economic growth.
Jonathan Reynolds’s Business Secretary and Employment Minister Justin Maders have met large -scale audit companies and large investors in recent months, and dehydrated X, which specifies about 600 “public interest businesses”. We discussed X reform.
The former conservative government pledged to reform British audit systems after several famous companies’ failures, including Outsodon Calion, Retailer BHS, and Cafe Chain Patisser Vallie.
In 2021, the Minister proposed to classify the largest private companies and the AIM listed companies as PIE. They acted after the BHS collapse raised questions about whether to be scrutinized more deeply to prevent the same failure in the audit of untreated companies.
This designation is 70 million annual sales of companies that are not registered in a non -list of 750 employees under the stricter regulatory system directed by the Financial Report (FRC). Move more than 50 million pounds.
Reynolds told Financial Times in 2023 that it would push long -term reforms if labor gained power. However, those who are familiar with the government said that the reform was “ancient history” because more strict audit requirements were regarded as “another barrier and growth limit.”
Reynolds are worried that proposals will encourage companies to encourage companies below the 750 employees or overseas, so the government is instead of a qualitative “important” company. He added that he might edit the list or abandon the proposal completely.
The Minister has recently been pursuing growth in a few weeks, and last month, he ordered 17 largest watchdogs and set measures to support the economy.
On Tuesday, the government has shown the chairman of the Competition Regulatory Authority after seeing an institution that the institution has not focused on growth.
The FRC was first appointed in 2018, and after a famous obstacle, the quality of audits improved. The former Tory government has created a package of reforms, including more powerful audits, reports, and replacing the current regulatory authorities with more powerful audits, reports.
However, in 2022, the proposal was lost, and the number of new pies decreased from up to 2,000 to 600.
The auditors were dissatisfied with the more strict audits applied by regulators in connection with pie.
Labor Party last year, using the first King’s speech, promised an audit reform and a Corporate Governance bill. The bill may still be included in the current Pie proposal, and one of the people has said, and the minister can choose to have a hash of parliamentary details.
The Leynolds allies are still open to the “specific values” to be applied to PIE, and the business secretary is carefully listening to the subject’s views, considering the broader economic impact of audit reform. I added it.
The Ministry of Business and Trading said that it would welcome stakeholders’ ideas before the bill draft this year.
“Our top priority is to boost the economy and increase the standard of workers, so the audit reform focuses on growth and investment support,” said the category.
